Preparing for tax year end

Useful EOFY information for your SuperSMA, Private Wealth and managed accounts

Praemium EOFY Information

In the lead up to June 30, we have outlined the important information you need to know about super changes for FY24 and the processing cut off times for Praemium SuperSMA, SMA and Private Wealth accounts.

For advisers please refer to the Help Centre for further information on End of Financial Year Reporting.

Super legislation changes for the new financial year

A number of superannuation changes were announced in the last federal budget which are effective from 1 July 2023. Here is a summary of the changes:

Transfer Balance Cap increases to $1.9m

Total Super Balance limit changes

Total Super Balance (TSB) is a way to value an individual’s superannuation interests in all their super funds.
It is calculated on a given date, usually 30 June (the end of the financial year).
An individual's TSB must be less than $1.9m to be able to make personal contributions in the following financial year. This is increasing from $1.7m.
Carry forward contributions cannot be used to increase the carry forward cap if the TSB at the end of the previous year is greater than $500k (no change to previous FY).

SG contribution rate increases to 11%

Pension minimum drawdown rates to increase back to pre-covid levels

From FY20 to FY22, the government halved the minimum drawdown requirement for pension accounts.
From 1 July 2023, the minimums will be increased back to FY19 levels. For example, a 62 year old member will be required to drawdown at least 4% of their 1 July balance in FY23 (up from 2% the previous year).
where a member's existing nominated pension amount is below the new financial year minimum, it will be updated to the new minimum amount.

Cut-off dates for SuperSMA processing

All cut-off dates and times are in AEST and relate to when the instruction must be received by Praemium.

* New applications – to ensure funds are allocated to this financial year, all contribution cut-offs still apply. Please ensure your client does not make BPAY contributions until you have received confirmation that their account has been established. Any BPAY made prior to the account being approved will be returned.

** These are limited to Personal Non-concessional Contribution, Spouse Contribution, Downsizer Contribution & Small Business CGT Concession.

*** Please include SuperSMA account number or name and contribution type code in the notes for direct deposits. For more information refer to the SuperSMA member notification form.

Further details on cut-off dates


New Praemium Super Accumulation Account Applications	Applications must be received by 6.00pm Wednesday 28 June 2023 in order for a client to be admitted to the fund prior to 30 June 2023. Please note the cut-off dates for contributions and rollovers in the table above.
Contributions/Rollovers - supporting documentation	All appropriate supporting documentation (eg. Downsizer Contribution Form) must be received by 5.00pm Wednesday 28 June 2023. We recommend that you check with your bank for clearing times and allow plenty of time for funds to clear ahead of the cut-off date. Rollovers: Please keep in mind that some transferring funds can take over three weeks to deliver the member's benefits via a SuperStream message the fund has initiated, and the timing of receipt is outside of our control. Note that SuperStream clearing houses used for rollovers and employer contributions can have internal delays of up to six days.
Benefit payments	This includes account closures, rollover outs, contribution splitting and commutations. Instructions must be received by 5.00pm Wednesday 14 June 2023.
Ad hoc pension payments	Ad hoc pension payments in June will continue to be available with the exception of the pension freeze from 8 June 2023 until 14 June 2023. The final cut off for an adhoc pension payment is not later than 5.30pm Monday 23 June 2023.

Cut-off dates for Private Wealth (IDPS) accounts

Please ensure you submit any requests prior to the stated deadlines to avoid any disappointment.

Request type	Cut-off dates and additional notes
Account opening	Correct and complete applications received by COB 23 June 2023 will be actioned by 30 June 2023
Asset transfers — ASX securities from 3rd party brokers (external transfers)	Asset transfers received by 23 June 2023 will be actioned by 30 June 2023. Neither Praemium nor our brokers Finclear Execution / Morrison Securities are able to account for the requirements and requests of counter parties.
Asset Transfers - ASX securities between account at the same broker (internal transfers)	Asset transfers received by 23 June 2023 will be actioned by 30 June 2023.
Asset Transfers – Managed funds (with our custodian Clearstream)	We cannot provide cut off guidance for Off Market Transfers. Managed funds processing varies depending on the fund manager and pricing frequency. Off Market Transfers will be actioned on a best endeavors basis.
Asset Transfers – International securities/ Bonds	We cannot provide cut off guidance for in specie transfers of International and Fixed income securities as multiple parties are involved in the transfer process and completion depends on counter parties and/or custodians.
On platform managed funds	Subject to fund manager deadline and acceptance. Applications: 1.00pm 29 June 2023 Redemptions: 9.30am 30 June 2023
Off platform non-custodially held assets	Subject to fund manager deadline and acceptance. Any instructions received after the below dates will be actioned on a best endeavours basis. Monthly priced assets: 12.00pm 16 June 2023 Daily priced assets: 12.00pm 29 June 2023
Leveraged Margin Lending	New account and new asset transfers (new clients) 23 June 2023 Drawdown fixed rate loan (existing clients) 23 June 2023 Drawdown variable loan (existing clients) 23 June 2023 Asset transfers (existing clients) 23 June 2023
NAB term deposits	Open new: 11.00am 30 June 2023 Maturity instructions: 11.00am 30 June 2023
Australian Money Market (AMM) Term Deposits	Open new: 1.30pm 30 June 2023 Maturity instructions: 1.30pm 30 June 2023
ANZ Direct Debit request ($50,000 AND ABOVE)	Direct debit requests received by 26 June 2023 will be actioned by 30 June 2023.

Statement Delivery Dates


Managed Account Annual Statements	Annual statements are issued to investors in August via Investor Portal. A notification will be sent to investors when this statement is available.
SuperSMA Annual/Member Statement	SuperSMA member statements are issued to investors by the end of December via Investor Portal. A notification will be sent to investors when this statement is available.
Pension and Income Protection Payment Summaries	Payment Summaries are issued for Pension members who have had PAYG withheld, and members in receipt of Income Protection insurance payments. These are issued to investors mid-July via Investor Portal. A notification will be sent to investors when this statement is available.
Managed Account Tax Reports	Tax reports containing information required to submit a tax return are issued to investors in September and October via Investor Portal. In order to have the most accurate tax information, these statements are issued once all trust information for the account has been received. A notification will be sent to investors when this statement is available.
Private Wealth (IDPS)	Annual investor statements are issued in September and Tax reports are issued to investors in October and November when these statements are available. An interim Tax report will be provided to investors in mid-November where tax components are still outstanding.