• P: 1300 790 110 | E: service@redwoodadvisory.com.au

Can I Reimburse the SMSF for Expenses Paid Personally?

Short answer is “Yes”, you can, under certain conditions.

 

A short example will be used to explain the answer.

 

One of our clients called us in a state of panic recently, explaining how he had paid our SMSF administration fee with a personal credit card instead of paying from the SMSF. He contacted us within 5 business days of the payment being made and requested if he could be reimbursed from the SMSF.

 

The first point of consideration is what is the purpose of the expense. The expense was annual administration fees incurred in the running of the SMSF (administration) and need to consider if the expense is ‘excessive’. This is allowable per the guidance in SMSFR 2008/2 paragraph 131 and is not considered a breach of the sole purpose test.

 

“If an SMSF trustee is reimbursed out of the funds of the SMSF for expenses properly incurred in the administration of the SMSF, the reimbursement will not involve the provision of a benefit in contravention of the sole purpose test. “

 

It is also recommended that Trustee(s) document the instance in a file note and have the note dated and signed by all members/ trustees.

 

If you have a question in regards to reimbursing expenses to your SMSF, please give Redwood Advisory a call on 1300 790 110  or set up SMSF online.

 

Ivan Filipovic – Director Redwood Advisory- SMSF Specialists.

 

The content has been prepared without taking account of the objectives, financial situation or needs of a particular individual and does not constitute financial product advice.

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Ivan Filipovic

Ivan Filipovic is an experienced, independent Property, SMSF and Finance Expert and the founder of Redwood Advisory. Ivan has been educating and coaching investors for over 15 years and has built a successful property portfolio with a number of positive geared properties across Australia.  Ivan provides valuable and honest guidance by educating Australians on how to invest successfully protect yourself with knowledge, contact Ivan today for a complimentary consultation on 1300 790 110 or email ivan@redwoodadvisory.com.au

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