Self-managed superannuation funds (SMSF) gives you control and flexibility over your investment decisions and preparing for retirement.

It is important to ensure your deductions and records are correct for the SMSF audit process and tax return, as there are strict laws governing SMSFs.

SMSFs are required to have a trust deed and the sole purpose is to provide retirement benefits to its beneficiaries. The trust deed governs how the fund is set up and how it operates which must be used in conjunction with the superannuation laws.

There are many different investment strategies for SMSFs according to the fund’s trust deed and operations.

Common Tax Deductions

Deductible expenses may vary according to the nature of the investments and the trust deed, below are some general expenses that would apply to most funds;

  • Operating expenses, such as management and administration fees, audit fees, tax agent fees and ASIC annual fees.
  • Investment-related expenses, such as interest, investment advice fees, costs of servicing and managing investments, property fees and brokerage fees.
  • Legal expenses including amending trust deeds
  • SMSF statutory fees and levies
  • Insurance premiums for death, total and permanent disability, terminal illness and income protection.

The rules of tax deductibility for SMSFs are different to those for individuals and businesses. Many are used to claiming deductions for certain items in business or property investment but find they are unable to in a SMSF. We can help clarify what’s deductible and what is not.

Expenses need to relate to the sole purpose of the super fund providing a retirement benefit to its members. There may be some items that meet the sole purpose test you may want to query with us, such as investment training courses, collectables and artwork, travel expenses or personal computers.

SMSF Annual Return and Records

Once a formal audit of the SMSF has been completed, the tax return needs to be lodged with the ATO. The tax return also reports on regulatory information and member contributions. You will need to keep all records relevant to the annual return.

  • Keep all transaction, tax, accounting and financial reporting records for at least five years
  • Keep all records relating to trustee meetings, minutes, investment strategies and appointments or changes of trustees for at least ten years.

Make SMSF management easy!

SMSF management can be time consuming. We can help with researching and managing investments, checking trust deed compliance, setting investment strategies, keeping records and liaising with the auditors.

Talk to us now and get ahead for your next annual SMSF return.