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Deductibility of expenses

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.

  1. SMSF setup/establishment costs: not deductible and need to be written off
  2. management and administration costs: deductible
  3. accounting fees: deductible
  4. ASIC annual review fees for both SMSF and custodian trust: deductible
  5. investment expenses for ongoing services: deductible
  6. actuarial costs: deductible
  7. supervisory levy: deductible
  8. borrowing costs: amortised in 5 year period
  9. bare trust setup costs: not deductible
  10. costs for updating the trust deed due to legislation changes: deductible
  11. costs for amending the trust deed for property purchase: not deductible
  12. life insurance, TPD and income protection insurance premiums: deductible
  13. property repair costs during the lease period: deductible
  14. initial repairs after purchasing the property: not deductible
  15. subscriptions: deductible if these costs are exclusively for running your SMSF
  16. SMSF software costs: deductible
  17. travel costs for inspecting properties in the SMSF: deductible but substantiation required
  18. SMSF education costs: deductible
  19. computer or internet costs: not deductible
  20. investment trading costs: not deductible, capital in nature
  21. winding up costs: deductible, can be accrued
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