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Are SMSF Costs/ Expenses Deductible?

Like other taxpayer entities, a complying SMSF is entitled to deduct from its assessable income any losses or outgoings that are:
• incurred in gaining or producing assessable income
• necessarily incurred in carrying on a business for the purpose of gaining or producing such income.
Expenses that a complying SMSF can deduct include:
• the supervisory levy
• insurance premiums for death and disability policies – these are deductible provided the policies have the necessary connection to a liability of the fund to provide death or permanent incapacity benefits (not other types of disability benefits)
• accounting and auditor fees (this includes Redwood Advisory’s administration fee)
• interest – a complying SMSF is generally prohibited from borrowing money or maintaining an existing borrowing of money, but interest incurred in gaining or producing assessable income would be deductible.
• Losses and outgoings relating to exempt current pension income are generally not deductible because they are incurred in earning exempt income.

• Insurance premiums – up to 30 June 2011 insurance premiums paid for a policy insuring against any form of permanent disability are fully deductible.

Source: http://ato.gov.au/Super/Self-managed-super-funds/Understanding-tax-and-SMSFs/Deductions/

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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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