Having a self-managed superannuation fund (SMSF) gives you control and flexibility over how you make investments and prepare for retirement.
It’s important to get your deductions and record keeping correct for the SMSF audit process and the tax return, as strict laws govern SMSFs.
An SMSF must be set up as a trust and have a legal document called a trust deed. A super fund trust is set up for the sole purpose of providing retirement benefits to its beneficiaries. The trust deed governs how the fund is set up and how it will operate and must be used in conjunction with the superannuation laws.
There are many different investment strategies for SMSFs according to the fund’s trust deed and operations.
Deductible expenses for SMSFs vary according to the nature of investments and the trust deed. However, some general expenses apply to most funds.
The tax deductibility rules for SMSFs differ from those for individuals and businesses. Many people are used to claiming deductions for certain things in business or property investment and find they don’t apply to SMSF tax returns. We can help clarify what’s deductible and what’s not.
Expenses must relate to the super fund’s sole purpose of providing its members with retirement benefits. There may be some items you want to query with us for the audit and tax return to see if they meet the sole purpose test, such as investment training courses, collectibles, artwork, travel expenses, or personal computers.
Once you have completed the formal audit of the SMSF, you must lodge the annual return with the ATO. The annual return is not only a tax return but also reports regulatory information and member contributions. You must keep all records relevant to the annual return.
SMSF management can be time consuming. We can help with researching and managing investments, checking trust deed compliance, setting investment strategies, keeping records, and conducting the audit.
Talk to us now and get ahead for your next annual self-managed superannuation fund (SMSF) return.