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.
- Australian Taxation Office. (2021). Self-managed super funds: annual return. Retrieved from https://www.ato.gov.au/Super/Self-managed-super-funds/In-detail/Annual-return/
- Australian Taxation Office. (2021). Self-managed super funds: tax returns. Retrieved from https://www.ato.gov.au/Super/Self-managed-super-funds/In-detail/Tax-returns/
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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.
SuperHelp is located in Macquarie Park, NSW however we work with clients all around Australia.