Guide to self-managed superannuation funds

Understanding tax and SMSFs

SMSFs are subject to income tax but receive concessional treatment, provided they are complying funds. A complying SMSF's assessable income is generally taxed at a rate of 15%, while for a non-complying fund the rate is 45%. The most common types of assessable income for complying SMSFs are:

• assessable contributions
• interest, dividends and rent
• net capital gains.

However, certain types of SMSF income are taxed at different rates:

• non-arm's length income is taxed at 45%
• no-TFN contributions are taxed at 46.5%
• current pension income is exempt from tax
• concessional contributions above the concessional cap are taxed at 46.5%.

A complying SMSF is entitled to claim deductions for expenses, such as the supervisory levy and auditor fees, that are incurred in gaining or producing assessable income.

SMSFs must register for GST if they have a GST turnover of $75,000 or more. Most SMSFs don't have this much GST turnover and so don't need to register.

Self-managed super funds - home

Sections within Understanding tax and SMSFs

• Assessable contributions
• Exempt current pension income
• Capital gains
• Non-arm's length income
• Deductions
• Goods and services tax (GST)