Self Managed Super Funds can claim deductions for expenses incurred in earning assessable income.

For an SMSF, tax deductible expenses will include:

• the supervisory levy
• member insurance – subject to the sole purpose test, and requiring consistency with a condition of release – see ATO article
• accounting, tax agent and auditors’ fees
• interest incurred in gaining or producing assessable income  

Fund expenses associated with exempt income are not deductible, and where applicable should be apportioned between the pension and accumulation funds. Some expenses however, such as the supervisory levy and death and disability premiums may still be claimed in full. See further:

• How expenses are treated when an SMSF has ECPI
• TR 93/17 Income tax: income tax deductions available to superannuation funds

The purchase of a life insurance policy in association with a buy-sell agreement, in circumstances which enable a benefit to flow to a non-member relative of a member, breaches the Sole Purpose test for reasons set out in ATO ID 2015/10.

SMSF – year end checklist

• SMSF year-end considerations for 2023–24
• EOFY: Getting your SMSF in order (2023)
• Super News – June 2021: Is your SMSF ready for the new financial year?
• The Ultimate SMSF End of Financial Year Checklist 2020
• Superannuation and SMSF End of Financial Year Checklist 2020
• Super fund tax return checklist 2017 – CPA Australia

See also

• SMSFs and insurance for members
• Superannuation disability insurance: tips and traps

This page was last modified 2024-04-28