SMSF Tax Deductions

Self Managed Super Funds are like any other taxpayer in the sense that in general, expenses incurred in earning assessable income are tax deductible.

For an SMSF, tax deductible expenses will include:

  • the supervisory levy
  • member insurance – subject to the sole purpose test 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 more here and 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

See also



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This page was last modified 2018-06-19