Any expenses incurred wholly and exclusively for running your SMSF can be paid from your SMSF.
Before paying any expenses from your SMSF bank account, you need to make sure the following conditions are met:
- the expenses incurred need to exclusively and wholly for operating your SMSF.
- the invoices needs to be issued to the SMSF. Not trustee or member’s personal names or other entities.
Type of SMSF expenses can be paid from the SMSF:
- accounting/tax agent/audit/legal/financial advice related to the operation of your SMSF
- life insurance/TPD/income protection insurance
- repairs/management/land tax/insurance for the SMSF properties
- subscriptions/seminars/workshops/software/training courses for operating your SMSF
- storage/valuation/insurance for the assets held in the SMSF
- corporate trustee setup/deed amendment/bare trust setup for your SMSF
- income tax/superannuation supervisory levy/ASIC fees for your SMSF
- any other expenses that you can justify they are incurred exclusively for running your SMSF
Type of expenses ca not be paid from the SMSF:
- general share/investment courses/webinars/workshops
- SMSF courses related to a property qualification, such as diploma (RG146) or an university degree
- trauma insurance
- any expenses not 100% for operating your SMSF
It is very important that SMSF trustees double check the above two conditions before making any payments from your SMSF bank accounts.
If you have paid any expenses not 100% for running your SMSF, you may have breached the following rules:
- sole purpose test
- early access without condition of release
- provide financial assistance to related parties