Establishment costs deductibility

iCare Super offers a free SMSF setup with individual trustees. For those who prefer a corporate trustee structure, a setup cost applies, which includes ASIC company registration fees. To initiate your SMSF setup, please visit Free SMSF Setup.

Reimbursement of Setup Costs

iCare Super is one of the few SMSF administrators that allows you to reimburse yourself for the setup costs paid out of your personal funds. However, it’s important to note that SMSF formation costs are classified as capital in nature and cannot be claimed as expense deductions. According to the ATO, SMSFs are not considered business entities, so these costs cannot be amortized.

Breakdown of iCare Super Setup Costs

• Trust Deed: Free
• Corporate Trustee Formation: Please refer to our fee schedule

While initial SMSF establishment costs such as the trust deed and corporate trustee formation cannot be expensed, they must be written off in the first year of the SMSF‘s operation and cannot be capitalized or carried forward.

Claiming Deductions for Deed Updates

Costs associated with updating the trust deed are deductible and can be claimed as deductions.

Payment and Reimbursement Process

How can I pay for the corporate trustee setup costs?

Once you request the corporate trustee setup, we will email you an invoice for the costs. This payment should be made upfront from your personal bank account.

Can I reimburse myself from my SMSF for the setup costs?

Yes, you can. You may transfer the amount from your SMSF bank account to your personal bank account as soon as sufficient funds are available. The ATO ruling that allows the reimbursement can be found in paragraph 131 of SMSFR 2008/2.

Contact Us

For any questions or assistance with your SMSF setup, please contact us. We are here to help you navigate the setup process smoothly and efficiently.