Self Managed Super Funds
Self Managed Super Funds, or the SMSF, are gaining popularity among the people. Most people invest in SMSF as it helps them to save for the future. But, unlike other restrictive old age pension plans, the SMSF can also be utilized to invest in real estate as well. In this article, we will help you on the kind of expenses and tax deductions you can avail with your SMSF investment.
In order to make an expense from your Self managed superannuation, you would need to relate directly from your fund. The thing to keep in mind is that the expense that you make should be directly related to your retirement benefit. So, any expense that would benefit you currently, would not be paid by your super fund. For example, you can buy a house from your SMSF fund as that would mean that in your old age, you will have a roof over your head. So, that expense could be deducted from the SMSF account. But, if you buy a motorbike from the money, you cannot deduct that expense from SMSF, as it would not be useful to you in your old age. Also, if the expense is higher, it is likely to get more scrutinization.
Some of the SMSF rules are as follows:
● The loan that you take from your SMSF should be only for personal use, and not to provide additional assistance to relatives or friends.
● All the transactions from the SMSF fund must be done on commercial terms.
● There are strict rules while selling things from your super fund in Australia, so exercise concern for the same, check your trust deed for details, terms and conditions before selling.
Payment remuneration to trustees
You will not be able to pay remuneration to yourself for being a trustee of your SMSF fund. But, there are some ways that you can be remunerated for, these services are:
● You have proper licenses and qualifications to perform the services
● The duties that you do should be a part of the services that you offer to the public
The initial reaction of many trustees of Australian superannuation funds to impact investment is one resources from superannuation funds and market makers.
Tax Deductions from SMSF:
You will not be allowed any Tax deductions from your SMSF account, but there would be times when you could pay using super fund. According to the tax ruling TR 93/17, some of the expenses that can be deducted as per your SMSF are:
● Accountancy fees
● Actuarial costs
● Audit fees
● Creating trust deed in compliance to SIS
● The fees and premiums that would be covered under Indemnity insurance policies
● The costs that are made to make the payments of benefits given to the members.
● ASFA membership fees
● Investment Adviser Fees
● Fund Management Advisory Costs
In order to stay out of trouble, you would need to make sure you have all the invoices to the super fund, and taking care that all the transactions are done from the fund only.
Rayvat Accounting with help you figure out the various strategies in order to gain the maximum advantage. Some of the strategies that we focus on when we work with Superannuation in Australia are Super Fund Pre mix investment strategies, Specialized or outsourcing superannuation and Direct Shares Superannuation.
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