Home Member Resources News NEW ATO GUIDANCE ON SUPER FUND DEDUCTIONS
Member Resources

NEW ATO GUIDANCE ON SUPER FUND DEDUCTIONS

Monday, 13 November 2017

The Australian Tax Office has issued new guidance on which expenses Self-Managed Superannuation Funds are eligible to deduct.

The advice provides detail about which expenses are deductible and under what circumstances.

It advises, “When considering if it is appropriate for the fund to pay a particular expense, it is important to ensure the payment is in accordance with a properly formulated investment strategy, allowed under your trust deed and the super laws.”
Information includes:
• Common fund expenses
• When you can claim
• Deductibility of expenses
• Apportionment

It says, “Operating expenses that are incurred by an SMSF are mostly deductible under the general deduction provision (section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997)) except to the extent they relate to the gaining of non-assessable income (such as exempt current pension income) or are capital in nature.”

Deductible operating expenses include:
• Management and administration fees
• Audit fees
• ASIC annual fee
• interest expenses
• ongoing management fees or retainers paid to investment advisers
• costs of servicing and managing an investment portfolio such as bank fees, rental property expenses, brokerage fees
• the cost of advice to change the mix of investments, whether by the original or a new investment adviser provided it does not amount to a new financial plan.
If the investment related advice covers other matters, or relates in part to investments that do not produce assessable income, only a proportion of the fee is deductible.

 

Further information

ATO: Self-managed superannuation funds – deductibility of expenses

Login to post comments
Array ( [format] => html [Itemid] => 160 [option] => com_k2 [view] => item [task] => 888:new-ato-guidance-on-super-fund-deductions [id] => 888:new-ato-guidance-on-super-fund-deductions )