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Deductions overview

Last updated 30 November 2023

The following expenses are generally deductible to a super fund, except where they are capital expenses:

  • accounting and audit fees, and actuarial costs incurred in complying with superannuation laws
  • legal expenses not capital in nature
  • ongoing management fees or retainers incurred in ‘servicing’ an investment portfolio
  • operating expenses
  • trust deed amendments not capital in nature
  • fees for trustee services not capital in nature

Expenses are not deductible where they are incurred in gaining non-assessable incomeFootnote3. If incurred partly in gaining assessable income and partly in gaining non-assessable income, these expenses must be apportioned.

Specific deductions

A deduction is available to a complying super fund that pays:

  • tax-related expenses such as accounting, audit fees and actuarial costs that relate to tax matters except when they are capital expenses
  • the super supervisory levy as a tax-related expense
  • death, total and permanent disability, terminal illness and income protection insurance premiums. The deduction is determined according to proportions specified under super law
  • an anti-detriment payment where the dependantsFootnote4 will receive some benefit. This deduction will no longer be available for lump sum death benefits where the member died on or after 1 July 2017
  • the financial assistance levy that is payable by APRA-regulated super funds and is fully deductible to a complying or non-complying super fund.

A deduction may be available for:

  • certain business-related capital expenditure (or blackhole expenditure) over a period of five yearsFootnote5.
  • the cost of depreciating capital assetsFootnote6 held by the trustee of a super fund and used in gaining or producing the fund's assessable income.

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When the trustee can claim

As a general rule, the trustee can claim the super fund’s expenses in the year the trustee incurs them. However, the costs of capital items (such as plant and equipment) and business-related capital expenditure may be claimed over a number of years.

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Keeping records

Funds must keep records, in English – in writing or electronically. The records must be in a form that we can access and understand. Generally, funds must keep all relevant records for at least five years. This period may be longer in certain circumstances.

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Footnote 3
Non-assessable includes exempt income and non-assessable non-exempt income

Return to footnote 3 referrer

Footnote 4
Includes a spouse, former spouse or child of the deceased member

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Footnote 5
Section 40–880 of the Income Tax Assessment Act 1997

Return to footnote 5 referrer

Footnote 6
Subdivision 40–B of the Income Tax Assessment Act 1997

Return to footnote 6 referrer

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