How to Complete Your SMSF Tax Return

SMSF trustees are responsible for managing their own superannuation funds, which means they are also responsible for ensuring that their SMSF complies with all the relevant laws and regulations. One of the most important compliance requirements for SMSFs is the preparation and lodgment of an annual tax return.

When it comes to SMSF tax returns, there are a few key things that trustees need to be aware of. Firstly, SMSFs are required to lodge an annual tax return even if they have no income or have made a loss for the financial year. This means that trustees need to ensure that their SMSF’s tax return is lodged on time, even if they have no tax to pay.

SMSFs are taxed at a flat rate of 15% on their taxable income. The taxable income of an SMSF is calculated by deducting the fund’s expenses from its assessable income. Assessable income includes, but is not limited to, investment income such as dividends, interest and rent, and contributions made to the fund. Expenses that can be claimed as deductions include, but are not limited to, accounting and audit fees, investment management fees and insurance premiums.

One of the key areas of focus for SMSF tax returns is the calculation and reporting of capital gains and losses. Capital gains and losses arise when an SMSF trustee sells or disposes of an asset that they hold in their fund. Capital gains tax (CGT) is a tax on the profit made from the sale of an asset, and it is calculated by subtracting the cost of the asset from the sale price. If an SMSF trustee makes a capital gain, they will need to include this in their SMSF’s tax return and pay CGT at the rate of 15%.

Another important area of focus for SMSF tax returns is the reporting of contributions made to the fund. SMSF trustees are required to report all contributions made to their fund, including those made by the trustees themselves and those made by others on behalf of the fund. There are limits on the amount of contributions that can be made to an SMSF each financial year and trustees need to ensure that they are aware of these limits and do not exceed them. If they do, they may be subject to additional tax.

It’s important to note that SMSF trustees are responsible for ensuring that their SMSF’s tax return is accurate and complete. This means that they need to keep accurate records and retain all relevant documentation, such as bank statements, invoices and receipts, to support the information reported in their SMSF’s tax return.

It’s also important to note that SMSF trustees can face penalties and fines if they fail to comply with their obligations under the tax laws. This includes failing to lodge their SMSF’s tax return on time, failing to keep accurate records or failing to report all income and deductions correctly.

SMSF trustees should seek professional advice from a qualified financial advisor, accountant or lawyer to ensure that they understand their obligations and that their SMSF’s tax return is prepared and lodged correctly.

Disclaimer: This information should not be considered personal financial advice as it is intended to provide general advice only. This factsheet has been prepared by SuperHelp Australia Pty Ltd without taking into account your personal objectives, financial situations or needs.

 

References:

 

Book Your Free SMSF Consultation

Book your free consultation with me to find out if SMSF is right for you. If you have any other questions, we are happy to help!

 

Sandra - SMSF Advisor

6 + 11 =

Why is SMSF Set up so affordable at SuperHelp?

SuperHelp has been servicing the SMSF market for over 15 years. We pride ourselves on being able to provide an affordable SMSF service without compromising on quality. One of these services is to provide new members with setting up their SMSF at an affordable fee when they use our award winning service.

Do I need to use a specific bank, broker or provider?

Unlike other SMSF administrators and accountants we do not restrict you to what bank, broker or service provider you use. We are independent and do not take any commissions from other parties so that our clients can invest their super where they please.

How long has SuperHelp been around for?

SuperHelp have been around since 2002 - so over 15 years! While new SMSF administrators have come and gone, we are still around!

Do you offer any other SMSF services?

Yes we do! You can see a full list of SMSF services on our services page.

SMSF Sole Purpose Test

The sole purpose test is a test the ATO uses to ensure that SMSF trusts are operating with the intention of only benefitting from their funds through the sole purpose of either retirement or in the event of a member’s death. While the way that an SMSF manages its...

Minimum pension payment planning

The Government has halved the minimum pension payment obligation for the 2020 and 2021 income years. This lower pension payment obligation makes it more likely that individuals will draw down pension capital above the minimum (e.g., to cover additional living costs)....

Commercial SMSF Loans – What you need to know

Securing a commercial loan for an SMSF can be complex due to the variety of lenders and options available. Whether you're a first-time borrower or an experienced borrower, it's important to understand the nuances of the loan process when applying for a commercial SMSF...

Super contribution changes 2020

In a win for retirees, recent Government law changes now make it easier for retirees to contribute super for both themselves and their spouse. Retirees able to contribute more under work test changes Traditionally, individuals aged 65 to 74 could only make voluntary...

Understanding Loan Rules and Regulations For SMSFs

Self-Managed Super Funds (SMSF) are a popular way for Australians to save for their retirement. However, many SMSF trustees are not aware that they can also use their fund to borrow money to invest in property or other assets. This type of borrowing is known as a...

New SMSF Penalty Regime

The new penalty regime for SMSF trustees will now proceed according to a recent announcement. The new laws will give the ATO power to issue a range of penalties to trustees of SMSF that breach the superannuation laws from 1 July 2014.

ATO Early Release Of Super

In light of the financial hardship being experienced by many Australians during the Coronavirus pandemic, the Government has extended early access of superannuation until December 2020. However, the ATO has expressed concern regarding individuals who may undertake...

What NOT to do with your SMSF related parties

Your SMSF will need investments, and it may need to borrow in order to make those investments. One of the crucial things to understand in your SMSF investment strategy is that you cannot invest or loan to any related parties. In fact, in the last 12 months the ATO has...

Superannuation Withdrawal Tax – What You Need To Know

Nobody enjoys it much, but paying tax is a necessary thing. And it is the same with your superannuation. When you withdraw your superannuation you will more than likely need to pay tax on the payments you receive, however, the amount of tax you pay will be dependent...

Property Revaluation & SMSF

Do properties held by SMSF need to be revalued every year? Currently, there is no specific legislation that requires properties held by SMSF to be revalued every year. However, independent SMSF auditor will require the financial statements presented to be a fair and...

Contact Us

SuperHelp is located in Macquarie Park, NSW however we work with clients all around Australia.

info@superhelp.com.au

1300 736 453

PO Box 1906 Macquarie Centre NSW 2113

M-F: 9am-5pm, S-S: Closed

8 + 13 =