Things to do with your SMSF before 30 June 2023

Having your own self-managed superannuation fund (SMSF) is pretty cool because you get to be in control of how you invest and prepare for retirement. But it’s super important to handle your deductions and keep accurate records for the SMSF audit and tax return. There are strict laws that govern SMSFs so you need to stay on top of things.

First things first, an SMSF needs to be set up as a trust and have a trust deed, which is a legal document. The whole point of a super fund trust is to provide retirement benefits to its beneficiaries. The trust deed basically lays out how the fund is structured and operated, and it needs to comply with superannuation laws.

Now, there are different investment strategies for SMSFs depending on the trust deed and how the fund operates. It’s not a one-size-fits-all situation.

Let’s talk about tax deductions. The expenses that are deductible for SMSFs can vary based on the investments and trust deed, but there are some general expenses that apply to most funds. There are operating expenses like management and administration fees, audit fees, and ASIC annual fees. Then there’s investment-related expenses like interest, investment advice fees, costs of managing investments, property fees, and brokerage fees. Don’t forget tax-related expenses such as preparing the SMSF annual return, legal expenses for amending trust deeds, SMSF statutory fees and levies, and insurance premiums. It can be a bit different from claiming deductions as an individual or business, so it’s good to get some guidance on what’s deductible and what’s not.

Remember, the expenses should be related to the sole purpose of the super fund, which is providing retirement benefits to its members. If you’re unsure about certain items like investment training courses, collectibles, artwork, travel expenses, or personal computers, you should definitely check with us to see if they pass the sole purpose test.

Once the formal audit of your SMSF is done, you then lodge the annual return with the ATO. This return is not just a tax return but also includes regulatory info and member contributions. And don’t forget to keep all the records related to the annual return. You must hold onto your transaction records, tax records, accounting records, financial reporting records for at least five years. And for trustee meetings, minutes, investment strategies, and trustee appointments or changes, keep those records for at least ten years.

Managing an SMSF can be a bit time-consuming, but don’t stress! We’re here to help you out. We can assist with researching and managing investments, making sure you comply with the trust deed, setting investment strategies, keeping records, and conducting the audit. So hit us up and let’s get ahead for your next annual SMSF return.

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