The following answers are for SMSFs in accumulation mode only.
These costs must be apportioned if the SMSF is in both pension and accumulation mode or to be classified as non-deductible if the SMSF is full pension mode. Also the deductiblity will vary if your SMSF uses segregation assets method. Please consult with us if you have any questions.
- SMSF setup/establishment costs: not deductible and need to be written off
- management and administration costs: deductible
- accounting fees: deductible
- ASIC annual review fees for both SMSF and custodian trust: deductible
- investment expenses for ongoing services: deductible
- actuarial costs: deductible
- supervisory levy: deductible
- borrowing costs: amortised in 5 year period
- bare trust setup costs: not deductible
- costs for updating the trust deed due to legislation changes: deductible
- costs for amending the trust deed for property purchase: not deductible
- life insurance, TPD and income protection insurance premiums: deductible
- property repair costs during the lease period: deductible
- initial repairs after purchasing the property: not deductible
- subscriptions: deductible if these costs are exclusively for running your SMSF
- SMSF software costs: deductible
- travel costs for inspecting properties in the SMSF: deductible but substantiation required
- SMSF education costs: deductible
- computer or internet costs: not deductible
- investment trading costs: not deductible, capital in nature
- winding up costs: deductible, can be accrued