Contributions made to the fund that are subject to certain tax concessions.
An SMSF (Self-Managed Superannuation Fund) may incur various taxes on an annual basis. The primary tax obligation for an SMSF is income tax. However, some SMSFs may also need to register and report other taxes separately from income tax on a quarterly or annual basis. These additional taxes may include: When assessing the income of an SMSF, the ATO requires the trustees to lodge an annual tax return. The tax return should include information about the SMSF’s assessable income, taxable income, and tax payable. The assessable income of an SMSF may consist of: Dividends, distributions, interest, rent, foreign income, and other types of income earned by the SMSF. Profits made from the sale of investments or assets. Income generated from transactions that are not conducted on an arm’s length basis. The applicable tax rate for an SMSF’s taxable income depends on various factors, including the nature of the income and the type of investments held. The tax rates that can be applied to an SMSF’s taxable income are: Even if your SMSF haven’t earned any income, you may still need to pay income tax due to the SMSF supervisory levy. The supervisory levy is an annual fee included in your SMSF tax return. For newly established SMSFs, the annual supervisory levy is $518, which reduces to $258 from the second year of operation. This levy applies regardless of the SMSF’s income or financial position. Therefore, even if your SMSF incurs a loss in a financial year, it will still be required to pay the supervisory levy, resulting in an income tax obligation. Contact us today to learn more about our SMSF solutions and how we can help you plan for a secure financial future.
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Tax Advice
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Expert Guidance for Tax Management
— What
ATO Requires SMSF Trustees to Lodge Annual Tax Return
— What
Tax Rates for SMSF’s Taxable Income
15%: This is the standard tax rate for most SMSFs.
10%: This lower tax rate may apply to SMSFs where at least 90% of the fund's income is derived from eligible pension assets.
0%: SMSFs in the pension phase may enjoy a 0% tax rate on their taxable income.
45%: This higher tax rate may apply to certain types of special income or non-complying SMSFs.
— What
SMSF Supervisory Levy: Impact on Income Tax Obligations
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