What you need to know about SMSF expenses

Thousands of Australians manage their own superannuation, so they can decide how their fund is managed and where their money is invested.

With managing a super fund come important legal obligations to
be met, as well as several rules associated with paying SMSF expenses that trustees
need to be aware of. The most common SMSF expenses may include:

  • – Accounting fees
  • – Audit fees
  • – Legal fees
  • – Investment advice fees
  • – Investment valuation fees
  • – Annual return fee for corporate trustee

One of the rules, for example, is that SMSF expenses should
be paid directly from the SMSF’s bank account rather than paid by trustees/members.

The Australian Taxation Office (ATO) has warned SMSF
trustees not to pay expenses on behalf of their SMSF because it can lead to an
excess non-concessional contribution issue.

SMSF trustees cannot be paid for their work as a trustee,
unless they are properly qualified and experienced, such as an accountant that
specialises in SMSF accounts and tax returns.

Records for SMSF expenses need to be maintained for at least
five financial years.

A licensed SMSF adviser may be able to help with the
administration of your self-managed super fund and help you avoid any penalties
by ensuring all required costs are paid.

Still confused?

The team at Peak Super has been helping Australians with their SMSFs for more than 30 years. Let us help you too by contacting enquiries@peaksuper.com.au or (08) 8172 9172.