• H1 and H2 SMSF auditor fee

    Attention

    Warning:

    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

    End of attention

    Did the SMSF incur auditor's fees?

    No

    Write 0 at H1. Go to I1 and I2.

    Yes

    Read on.

    Write at H1 and H2, as required, the amount of auditor fees that the SMSF incurred in 2014–15.

    Deductible SMSF auditor fee

    Write at H1 the deductible amount for SMSF auditor fees.

    Do not include at H1 any part of the SMSF's auditor fees that relate to earning:

    If the SMSF pays an income stream (pension) to a member, refer to How are expenses treated when an SMSF has ECPI? before you claim a deduction for the SMSF's auditor fees.

    Non-deductible SMSF auditor fees

    Write at H2 the amount for auditor fees that is not deductible. This includes auditor fees to the extent the fees are incurred for the purposes of earning exempt income, such as exempt current pension income.

    Example 'SMSF with no ECPI': SMSF auditor fee

    SMSF H has no exempt current pension income, foreign income or non-arm's-length income.

    In 2014–15, SMSF H paid an auditor $1,000 to audit its 2013–14 accounts.

    SMSF H reports:

    H1 Deductible SMSF auditor fee $1,000

    H2 Non-deductible SMSF auditor fee (Blank)

    End of example

     

    Example SMSF with ECPI: SMSF auditor fee

    SMSF HH pays an income stream to one of its three members and some of its income is exempt from income tax under the exempt current pension income rules.

    In 2014–15, SMSF HH paid an auditor $1,000 to audit its 2013–14 accounts.

    Using the rules described at How are expenses treated when an SMSF has ECPI? SMSF HH determines that $250 of the audit fee relates to earning its exempt current pension income.

    SMSF HH reports:

    H1 Deductible SMSF auditor fee $750

    H2 Non-deductible SMSF auditor fee $250

    End of example
    Last modified: 15 Jan 2016QC 44344