Lodging the SMSF annual return

Your super fund must lodge a Self-managed superannuation fund annual return 2026 if it was either:

• an SMSF on 30 June 2026
• an SMSF that was wound up during 2025–26.

You can lodge the SMSF annual return:

• electronically using standard business reporting (SBR)
• with a registered tax agent
• by paper form.

For more information, see How to lodge and pay your SMSF annual return.

Get the SMSF annual return

To get a paper form Self-managed superannuation fund annual return 2026External Link, go to our Publication Ordering Service (POS) at iorder.com.au.

Get the SMSF annual return instructions

The Self-managed superannuation fund annual return instructions 2026 aren't available in print.

You can create and save a PDF copy from this webpage – select the Print or Download PDF icon under the page heading then select PDF whole topic.

These instructions will help you complete the Self-managed superannuation fund annual return 2026 (SMSF annual return). However, they aren't a guide to income tax or superannuation law. Seek help from us or a registered tax adviser if these instructions don't fully cover your circumstances.

Who needs to complete an SMSF annual return?

Only SMSFs can use the Self-managed superannuation fund annual return 2026.

Super funds that aren't SMSFs at the end of 2025–26 must use the Fund income tax return 2026 instructions and, where required, report contributions and member account balances separately.

Your SMSF must lodge an SMSF annual return even if it doesn't have a tax liability.

Information you report in your annual return doesn't affect your member’s transfer balance account. You must report transfer balance cap events such as your member starting or commuting a retirement phase income stream separately, see Event-based reporting for SMSFs.

Using the SMSF annual return instructions

Work through these SMSF annual return instructions from the start (section A) to the finish (section K).

You must answer all mandatory items.

You must answer all items which apply to your SMSF.

Leave the answer box blank for all other items. If you leave the answer box blank, you will have specified a zero amount or that the item isn't applicable to you.

Read the instructions for each item to find out:

• whether you need to complete the item
• the information you must provide.

If a question doesn't apply to your SMSF, move on to the next item.

Continue to: What's new for SMSFs

Denying deductions for ATO interest charges

The Treasury Laws Amendment (Tax Incentives and Integrity) Act 2025External Link amended the tax law to deny income tax deductions for general interest charges (GIC) and shortfall interest charges (SIC). The amendments to deny claims for deductions apply in relation to assessments for income years starting on or after 1 July 2025.

The application provision for this measure has the same effect as if it had been expressed as applying to GIC and SIC incurred on or after 1 July 2025. GIC and SIC incurred before this date will continue to be deductible for the 2024-25 and earlier income years.

As GIC and SIC are no longer deductible, any GIC or SIC that is later remitted, will no longer need to be included as assessable income in the year in which the remission occurred. Remissions of GIC and SIC are assessable only if the original interest was deductible. If any of this GIC or SIC incurred prior to 1 July 2025 is later remitted, the amount that is remitted will need to be included in your assessable income in the year in which the remission occurred.

For more information see: Denying deductions for ATO interest charges

Junior Mineral Exploration Incentive

On 5 May 2021, the Australian Government announced it would extend the Junior Minerals Exploration Incentive to 30 June 2025. The Junior Mineral Exploration Incentive has not been extended beyond this date.

From the 1 July 2025 exploration credits cannot be received or claimed.

Item 13 Calculation statement - label E4 Exploration credit tax offset has been removed from the Self-managed superannuation fund annual return 2026 as part of this change.

Continue to: How to lodge and pay your SMSF annual return

Return to: How to get the SMSF annual return 2026

 

Lodging the SMSF annual return and schedules

An SMSF must lodge an SMSF annual return, even if it doesn't have a tax liability for the income year.

You can lodge the SMSF annual return, either:

• electronically
• on the paper form.

You can't lodge the SMSF annual return until an annual SMSF audit report has been completed and signed. You need information from the audit report to complete the regulatory information on the SMSF annual return.

Lodging electronically

To lodge electronically you need Standard Business Reporting (SBR)-enabled software that supports electronic lodgment by SBRExternal Link.

If the SMSF has any of the following items, then you can't lodge electronically and must lodge a paper SMSF annual return:

• No assets or liabilities (unless it was wound up during 2025–26).
• No assessable income.
• A type of deduction that can be claimed even where there is no assessable income, such as tax-agent fees and the SMSF supervisory levy.
• Both non-arm's length income and an arm's length loss.

You must keep arm's length income, deductions and losses separate from non-arm's length income, deductions and losses.

You must reduce any tax loss by the SMSF's tax exempt current pension income (ECPI) before you carry the loss forward to 2026–27.

You must lodge a paper SMSF annual return if these circumstances apply to your SMSF.

Lodging the paper SMSF annual return

You can lodge a paper SMSF annual return that:

• you download and print – the Self-managed superannuation fund annual return 2026
• we send to you, that you request.

To lodge your paper SMSF annual return, you must send us your original paper SMSF annual return to the following address:

Australian Taxation Office
GPO Box 9845
[insert the name and postcode of your capital city]

For example:

Australian Taxation Office
GPO Box 9845
SYDNEY  NSW  2001

Make a copy of the original annual return for the SMSF's records.

Lodging schedules

If required, you may need to include the relevant schedules:

• Capital gains tax schedule 2026 instructions
• Family trust election revocation or variation 2026 instructions
• Interposed entity election or revocation 2026 instructions
• Losses-schedule-2026-instructions
• Non-individual PAYG payment summary schedule 2026
• Trust income schedule 2026 instructions
• any election required by Taxation Ruling IT 2624 Income tax: company self assessment; elections and other notifications; additional (penalty) tax; false or misleading statement.

If you lodge the SMSF annual return without all the schedules we require, we may not consider your lodgment to be in the approved form. Unless you lodge your SMSF annual return with schedules we require by the due date, we may apply a penalty for failing to lodge on time.

You may also have to complete other schedules or documents which you don't need to lodge with your SMSF annual return. Don't send them with the SMSF annual return. Sign and date any schedules and keep the schedules and documents with the SMSF’s tax records.

Our announcement about super funds and collective investment vehicles (CIVs) being required to complete a Reportable tax position (RTP) schedule from Tax Time 2026, does not include SMSFs. You are not required to lodge a Reportable tax position schedule.

For more information, see Upcoming inclusion of super funds and CIVs in RTP schedule.

Lodgment due dates

The SMSF annual return for a particular income year is due in the following income year. For example, the 2026 SMSF annual return (for 2025–26) is due in 2026–27. Not all SMSFs have the same lodgment due date. Check below for the due date that applies to your SMSF.

If a due date falls on a weekend or public holiday you can lodge or pay on the next business day.

Self-preparers

An SMSF that prepares and lodges its own annual return must lodge by the applicable date in the table below. If more than one date applies to the SMSF, it must lodge by the earliest date that applies to it.

Table: Dates and types of lodgment for self-preparers

Lodgment date	Self-preparer to whom the date applies	Payment due date (if required)
31 October 2026	Either a: New registrant SMSF SMSF with one or more annual returns overdue on 30 June 2026 (unless they have been granted a lodgment deferral)	1 December 2026
31 January 2027	SMSF that was a taxable large or medium entity in 2025–26	1 December 2026. See, Due dates for lodging and paying.
28 February 2027	All other self-preparing SMSFs (unless we have directed you to lodge on a different date)	28 February 2027

Failure to lodge your SMSF annual return by the due date has consequences. If your return is 2 weeks overdue, your regulation details will be removed from Super Fund Lookup. This can restrict your SMSF from receiving rollovers and contributions. It can also result in penalties and the loss of your SMSF’s tax concessions.

Tax agent clients

An SMSF that uses a registered tax agent to prepare and lodge its annual return should contact its tax agent to find out the due date for lodgment.

For your first year the due date will be 28 February 2027.

Amending an SMSF annual return

To amend your SMSF annual return you need to:

• resubmit the whole annual return
• answer Yes to the question Is this an amendment to the SMSF's 2026 return? at Section A, item 5.

When submitting an amendment, you must complete the new form in full (not just the parts you want to change). Your amended form will replace the original form in our system.

You can lodge amendments to the 2026 SMSF annual return by:

• lodging a full SMSF annual return through Secure mail in Online Services for business
• lodging electronically using commercial software that supports Standard business reportingExternal Link (tax agents only)
• providing a full SMSF annual return through Online services for agents (tax agents only)
• sending the paper form Self-managed super fund annual return 2026 (NAT 71226) to

Australian Taxation Office
GPO Box 9845
[insert the name and postcode of your capital city]

You have not lodged your amended paper SMSF annual return if it is sent to another address (even if it is the address of an ATO office).

You can't request amendments to an SMSF annual return by either:

• writing to us with the correct details
• using a Request for amendment of an income tax return for individuals form.

Assessment

Under the self-assessment system, an SMSF completes and lodges its annual return and pays the amount it is required to pay (if any) to the ATO. An assessment of an SMSF is deemed to be made on the day you lodge the annual return.

The SMSF won't receive a notice of assessment. However, we will issue a notice of amended assessment if subsequent amendments are made.

If you don't agree with a decision made by the ATO, see Dispute or object to an ATO decision.

You can request a ruling or SMSF specific advice to clarify the way the law applies to your SMSF. For more information, see:

• Applying for a private ruling
• How to apply for SMSF specific advice – Getting started.

How to pay the SMSF's tax debt

The tax payable by a fund for an income year becomes due and payable on the statutory due date, which is the first day of the sixth month of the following income year. For example, for 30 June balancing funds the statutory due date is 1 December.

We offer a range of convenient payment options. For the full list of payment options see, How to pay.

Your payments must reach us on or before the due date. When you use a valid payment reference number (PRN), your payment may take up to 4 business days to appear on your ATO account.

General interest charge (GIC) will apply to any outstanding amounts owing after the due date.

If you can't pay your tax debt when due

You are expected to organise your affairs to ensure that you pay your debts on time.

If you can't pay your debt on time, you may be eligible for a payment plan. You should pay as much as you can then consider how much you can pay as ongoing payment amounts.

We recommend you use the payment plan estimator to work out how quickly you can pay off a tax debt and how much interest you'll be charged.

Even if you enter into a payment plan, GIC will accrue on the unpaid amount on a compounding basis. Paying your debt in the shortest period of time will help reduce the GIC that you pay. The longer you take to pay your debt, the more interest you'll pay.

If you owe less than $200,000, you may be table to set up a payment plan:

• through Online Services for business – select Accounts and payments then Payment plans
• through your registered tax agent or BAS agent who can use online services to enter a payment plan on your behalf
• by phoning our automated service for business enquires.

To set up a payment plan, you need your Australian business number (ABN) or tax file number (TFN) and the full details of your outstanding amount. You may need to provide details of the SMSF’s financial position, including a statement of its assets and liabilities and details of the SMSF’s income and expenditure. We will also want to know what steps you have taken to obtain funds to pay the tax debt and the steps you are taking to meet future payments of tax debts on time.

If your SMSF owes over $200,000, phone our lodge and pay enquiry line during operating hours to discuss your options.

Penalties and interest charges

You should take care in your application of the law and the statements you make in the SMSF annual return. The law imposes penalties on the trustees of SMSFs for:

• failing to lodge the annual return on time and in the approved form
• making a false or misleading statement even if there is no shortfall amount
• having a shortfall amount for underreporting a liability or over-claiming a credit that's caused by taking a position that isn't reasonably arguable
• failing to provide an annual return from which the Commissioner can determine a liability
• entering into a scheme to obtain a tax benefit.

Knowingly answering a question incorrectly will result in a higher penalty than answering carelessly. SMSF trustees have ultimate responsibility for the SMSF, even if the trustees use professional services such as administration providers, tax agents or other financial advisers.

Penalties for false or misleading statements won't apply, if either:

• the trustee of the SMSF and their registered tax agent (if applicable) made a mistake and they took reasonable care with making the statement
• the trustee of the SMSF gave their registered tax agent all relevant tax information and the agent makes a false or misleading statement due to a lack of reasonable care by the agent.

The trustee of an SMSF is liable for GIC if either:

• tax, penalties or shortfall interest charges (SIC) remain unpaid after the due date for payment
• a variation of a pay as you go (PAYG) instalment rate or amount is less than 85% of the rate or amount which would have covered the SMSF’s actual liability for the year.

The trustee of an SMSF is liable for SIC if the SMSF’s income tax assessment is amended and its liability increased. Generally, SIC accrues on the extra tax payable from the due date of the original assessment until the day before the assessment is amended.

For general information about SMSF penalties, see Our SMSF non-compliance actions.

Continue to: Instructions to complete your SMSF annual return 2026

Return to: What’s new for SMSFs?

Before you start

You must complete at least 6 sections (A, C, D (F and/or G, H and K) of the SMSF annual return. Complete the other sections only if they apply to your SMSF.

You must complete every item in section A. This section asks you to provide information about the SMSF, including its current status and details from its annual auditor's report.

1 Tax file number (TFN)

Write the TFN of the SMSF in the boxes at item 1 and in the boxes at the top of the form on pages 3, 5, 7, 9 and 11.

2 Name of self-managed superannuation fund (SMSF)

Write the current name of the SMSF exactly as it appears on the SMSF’s trust deed or equivalent document at item 2.

The name of the SMSF should be the same as in past years unless the SMSF has changed its name. If the name of the SMSF is legally changed, you must notify us of the change within 28 days.

3 Australian business number (ABN)

If the SMSF has an ABN write it in the boxes at item 3. Providing the SMSF ABN ensures account details for the SMSF are displayed for the member when they access ATO online services.

If the SMSF doesn't have an ABN, leave the boxes blank. We recommend that you apply for an ABN at the Australian Business RegisterExternal Link.

The ABN is a unique business identifier used in dealings with the Australian Government. It is also available to state, territory and local government regulatory bodies. Identification for tax law purposes is only one of the uses of the ABN. For more information about privacy and ABNs, see the ABR Privacy statementExternal Link.

4 Current postal address

Write the current postal address of the SMSF at item 4.

We will use this address to send correspondence.

Abbreviate ‘care of’ to ‘C/-’ only.

5 Annual return status

Answer the 2 questions at item 5:

1. Label A Is this an amendment to the SMSF's 2025 annual return?

Print X in the appropriate box, either No or Yes at item 5 – label A.

If you are lodging an amended annual return, you must complete and lodge the entire annual return. Don't lodge only the changed information, see Amending an SMSF annual return.

2. Label B Is this the first required return for a newly registered SMSF?

Print X in the appropriate box, either No or Yes at item 5 – label B.

If you are lodging, or amending, an SMSF’s first annual return, you must complete item 13 – label N Supervisory levy adjustment for new funds in Section D: Income tax calculation statement.

6 SMSF auditor

SMSFs must be audited every income year. The auditor must be registered as an SMSF auditor with the Australian Securities & Investments CommissionExternal Link. Check that your auditor is registered.

Your auditor must provide you and any other trustee of your fund with a completed and signed Self-managed superannuation fund independent auditor’s report before you can lodge this annual return. The details that you need to complete this item are available from that report.

Auditor’s name

Print X in the appropriate box for the title of the auditor, or write a different title in the Other box.

Write, in the boxes provided, the auditor's:

• family name and given names
• SMSF auditor number (SAN)
• phone number – 10 digits
• postal address – including suburb or town, state and postcode.

Date audit was completed

Write at label A the date the audit was completed.

Was Part A of the audit report qualified?

Check if the auditor has given a qualified opinion, disclaimer of opinion or an adverse opinion in Part A: Financial audit of the SMSF independent auditor's report.

Print X in the appropriate box, either No or Yes at label B.

Answer No if either:

• Part A of the audit report did not have a qualified opinion, disclaimer of opinion or an adverse opinion
• Part A of the audit report was only qualified in relation to insufficient audit evidence under Auditing Standard ASA 510 Initial Audit Engagements – Opening Balance.

Answer Yes if Part A of the audit report has a qualified opinion, disclaimer of opinion or an adverse opinion.

Was Part B of the audit report qualified?

Check if the auditor has given a qualified opinion, disclaimer of opinion or an adverse opinion in Part B: Compliance engagement of the SMSF independent auditor's report.

Print X in the appropriate box, either No or Yes at label C. Answer Yes if Part B of the audit report has a qualified opinion, disclaimer of opinion or an adverse opinion.

If you answer No, go to 7 Electronic funds transfer (EFT).

Have the reported issues been rectified?

At label D, the question asks – If Part B of the audit report was qualified, have the reported issues been rectified?

If you answered Yes at label C, print X in the appropriate box, either No or Yes at label D.

Answer Yes if the issues that resulted in the qualified opinion, disclaimer of opinion or an adverse opinion that you reported at label C have been rectified. Otherwise answer No.7

7 Electronic funds transfer (EFT)

You must provide the SMSF's bank account details at label A, even if you have given them to us previously.

Don't provide a tax agent's financial institution account details at label A.

Providing a trustee's personal account details, instead of the SMSF's bank account details, may result in improper early access to super benefits. This is illegal. If a benefit is unlawfully released, we may apply significant penalties to the SMSF and the recipient of the benefits.

Fund's financial institution account details

Write at label A the details of the SMSF’s account with a financial institution. We will make super payments to this account.

We will also pay tax refunds to this account if you don't complete label B.

We need your financial institution details to pay any refund owing to you, even if you have provided them before, including:

• SMSF’s Bank State Branch (BSB) number (6 digits, don't include spaces or hyphens)
• SMSF’s account number (no more than 9 digits, don't include spaces or hyphens)
• SMSF’s account name – for example, SMSF C. The account name must not exceed 64 characters, including spaces. To keep within the 64 character limit, you may abbreviate the full name of the SMSF (for example, by using ‘ATF’ instead of ‘as trustee for’ or 'Super Fund' or ‘SF’ instead of ‘Superannuation Fund’). If the SMSF's bank (or similar financial institution) account name has more than 64 characters, provide the first 64 characters only.

Your refund can only be paid into a recognised Australian financial institution account.

Do you want to use the SMSF bank account to receive both super contributions and rollovers, and tax refunds?

• Yes – Print X in the 'I would like my tax refunds made into this account' box. Go to label C.
• No – Write at label B the details of the bank account to which we will pay refunds.

Financial institution account details for tax refunds

If you would like your tax refunds made to a different account than what you record at label A, write at label B the details of the bank account that you want us to pay tax refunds to.

You can provide tax agent financial institution details at label B. Don't add tax agent financial institution details into label A.

Write the financial institution details in the boxes, include:

• Bank State Branch (BSB) number (6 digits, don't include spaces or hyphens)
• Account number (no more than 9 digits, don't include spaces or hyphens)
• Account name. The account name must not exceed 64 characters, including spaces. If the financial institution account name has more than 64 characters, provide the first 64 characters only.

Electronic service address alias

Write at label C your active electronic service address alias (ESA).

An ESA alias consists of a maximum of 16 alphanumeric characters with a combination of upper and lower case characters – for example, SMSFdataESAAlias.

SMSFs that receive employer contributions (other than from an employer that's a related-party) or rollovers from other super funds must have an active ESA alias registered with an SMSF messaging service.

This enables electronic remittance advice, contribution and rollover messages to be sent to your SMSF when:

• non-related employers make super contribution payments
• the ATO transfers super entitlements such as government contributions or unclaimed monies
• super funds rollover super monies (in part and in full) to your SMSF.

If you have received, or expect to receive, contributions or rollovers for one or more of your members, you must get an ESA alias for your SMSF from:

• a registered SMSF messaging service provider
• your tax agent
• your SMSF administrator.

An ESA isn't an email address or the contact details of the registered SMSF messaging provider.

The ESA alias your SMSF messaging service provider provides is case sensitive and you must provide it to us in the exact format you receive it.

If your SMSF doesn't have an ESA, the SMSF may not receive super payments.

For more information about getting an electronic service address, see Register of SMSF messaging providers (the Register).

Since 1 October 2021, SMSFs receive rollovers into their fund and make rollovers from their fund only by using SuperStream. Check with your provider or on the Register to ensure your ESA is set up for rollovers. For more information about ESAs and preparing your SMSF for the SuperStream standard for contributions and rollovers, see Responding to release authorities issued to SMSFs.

You will receive a change of details alert for changes made to your financial institution details and electronic service address on the SMSF annual return.

8 Status of SMSF

Answer the following questions to complete item 8.

Australian superannuation fund

Is the SMSF an 'Australian superannuation fund'?

Print X in the appropriate box, either No or Yes at item 8 – label A.

For the definition of 'Australian superannuation fund', see Australian super fund.

If the SMSF doesn't meet the definition of Australian super fund at all times during the income year, the SMSF isn't a complying SMSF and it won't receive the concessional rate of tax.

If you are the trustee of an SMSF and you are planning on going overseas, we suggest that you consider whether your SMSF will still be an Australian super fund.

Fund benefit structure

Print at label B the code from Table 1 that best describes the benefit structure of the SMSF. Most SMSFs will use code A.

Table 1: SMSF benefit structures

Code	Definition of SMSF benefit structure
A	An SMSF is an accumulation fund if the SMSF provides its members with a benefit which is the total of: specifically defined contributions to the SMSF add   earnings on those contributions subtract   any costs attributed to the member. An SMSF of this type must use code A, even if the SMSF or any of its accounts is supporting a super income stream benefit.
D	An SMSF is a defined benefit fund if the SMSF was both: paying a 'defined benefit pension' to a member before 12 May 2004 paying its members a benefit worked out from a formula that includes   the years of membership in the SMSF, and the average salary level over a specific time.
E	An SMSF is a hybrid fund if it has a combination of both accumulation and defined benefit members.

Acceptance of super co-contribution and low income super amounts

At label C, the question asks – Does the fund trust deed allow acceptance of the government's super co-contribution and low income super amounts?

A low income super amount (LISA) is a low income super tax offset (LISTO).

Does the fund trust deed allow the SMSF to accept the government’s super co-contribution and low income super amount for all eligible members?

Print X in the appropriate box, either No or Yes at item 8 – label C.

If the trust deed allows the acceptance of government contributions and low income super amounts, you must provide your SMSF with an electronic service address (ESA) alias at Section A, item 7 – label C.

9 Was the fund wound up during the income year?

If the fund was wound up during the income year, print X in the appropriate box, at item 9, either:

• No – Print X in the No box. Go to item 10 Exempt current pension income.
• Yes – Print X in the Yes box. Write the date on which the SMSF was wound up in the boxes provided. That date must be a date from 1 July 2025 to 30 June 2026 and be the date on which the fund no longer held any assets.

Have all tax lodgment and payment obligations been met?

Print X in the appropriate box, either No or Yes at item 9.

For an SMSF that was wound up during 2025–26, have the trustees:

• paid all outstanding debts
• paid out or transferred all member benefits
• lodged all previous years' annual returns?

For an SMSF that was wound up during 2025–26, you must complete Section D, item 13 – label M Supervisory levy adjustment for wound up funds.

Your fund's bank account must remain open until all expected liabilities have been settled and requested refunds have been received.

For information about your obligations when winding up an SMSF.

10 Exempt current pension income

If the SMSF paid retirement phase superannuation income stream benefits to one or more members during 2025–26, some, or all, of its ordinary income and statutory income may be exempt from income tax under the ECPI rules.

This exempt income is called exempt current pension income. For more information about completing labels in the SMSF annual return for ECPI, see Appendix 1: ECPI examples – completing labels in the SMSF annual return.

For more information about the taxation of super entities, see Subdivision 295-F of the Income Tax Assessment Act 1997.

Payment of retirement phase superannuation income stream benefits

This question asks – Did the fund pay retirement phase superannuation income stream benefits to one or more members during 2025–26?

• No – Print X in the No box. Go to Section B: Income.
• Yes – Print X in the Yes box. Complete the remaining items below.

Exempt current pension income amount

There are 2 methods you can use to work out the SMSF's ECPI:

• segregated assets method
• unsegregated assets method (proportionate method).

Calculate the SMSF's ECPI and write it at item 10 – label A.

If you complete Section B, the amount that you write at label A for item 10 in Section A must be the same as the amount that you write at label Y Exempt current pension income for item 11 in Section B.

Method you use to calculate your exempt current pension

This question asks – Which method did you use to calculate your exempt current pension income?

Print X in the appropriate box or boxes (labels B or C or both labels B and C) to indicate which method or methods you use to calculate the SMSF's ECPI.

Table: indicating which method you use to calculate ECPI

Method used	Label to complete
Segregated assets method	Print X in box at label B.
Unsegregated assets method (Proportionate method)	Print X in box at label C. Print X in the Yes box at label D if you obtained an actuarial certificate that certifies the proportion of income that's exempt from income tax.
Both the segregated assets method and the unsegregated assets method (proportionate method)	Print X in the boxes at both labels B and C. Print X in the Yes box at label D if you obtained an actuarial certificate that certifies the proportion of income that's exempt from income tax.

Assessable income

This question asks – Did the fund have any other income that was assessable?

• Yes – Print X in the Yes box at label E. Go to Section B: Income.
• No – The SMSF didn't receive any no-TFN-quoted contributions or have other assessable income for the income year. Print X in the No box at label E. Go to Section C, item 12 Deductions and non-deductible expenses.

Continue to: Section B: Income – item 11

Return to: Instructions to complete your SMSF annual return 2026

Do you need to complete section B?

Most SMSFs need to complete section B. However, you don't complete section B if all the SMSF's income in 2025–26 is exempt from income tax under the exempt current pension income rules.

Don't assume that the SMSF has no assessable income (and that you don't need to complete section B) just because all its members received retirement phase superannuation income stream benefits in 2025–26. Situations where an SMSF has assessable income even though it pays retirement phase superannuation income stream benefits to all its members include:

• the SMSF is non-complying
• the SMSF has non-arm's length income
• the SMSF received assessable contributions
• the SMSF paid less than the minimum annual pension payment amount to one or more members receiving retirement phase superannuation income stream benefits (see Income stream (pension))
• the SMSF isn't paying retirement phase superannuation income stream benefits to all members for the entire income year
• the SMSF is paying superannuation income stream benefits from an income stream that isn't in retirement phase, for example, a transition to retirement income stream paid to a member who is under 65 and hasn't notified the SMSF they have met a condition of release with a nil cashing restriction
• the value of the SMSF's assets exceeds the total of the account balances supporting the income streams (for example, an SMSF may keep assets in a reserve account, separate from the members’ accounts, to be prepared for certain contingencies).

Whether or not you need to complete section B, remember to complete Section C: Deductions and non-deductible expenses where you include expenses that relate to the SMSF's exempt income. Expenses, that are normally deductible, are generally non-deductible when they relate to tax-exempt income.

An SMSF in retirement phase, including a fund that's 100% in retirement phase for the whole year, must also complete a Trust income schedule 2026 instructions for any trust distributions it is entitled to.

Answering Section B

Complete section B for all assessable income of the SMSF during 2025–26, whether the SMSF receives it or not.

Work through each question in this section and:

• write the relevant amount if the question applies to your SMSF
• write zero (0) at the mandatory question item 11 – label R3 No-TFN-quoted contributions if it doesn't apply to your SMSF
• leave the answer box blank for other questions that don't apply to your SMSF.

Answer the questions in their sequence.

• Some questions rely on information you have already entered in previous questions.
• You will need to go through the questions in the left-hand column (labels D1, R1 to R6, U1 to U3) before you can complete labels D, R, U in the right-hand column.

Don't show cents for any amount you write in this section.

Goods and services tax (GST)

If the SMSF is registered, or required to be registered, for GST purposes, don't include GST amounts in the assessable income you show on the annual return. In the deductions you show, don't include any amount that relates to input tax credit entitlements.

If the SMSF isn't registered and not required to be registered for GST purposes, or if it isn't entitled to an input tax credit, the deductions you show are the GST-inclusive amounts that the SMSF incurred. Special rules apply to GST adjustments. To register for GST, apply at the Australian Business RegisterExternal Link.

Foreign currency translation rules

If the SMSF has entered into transactions in a foreign currency or derived income in a foreign currency, you need to translate those amounts to Australian currency to calculate the assessable or deductible amount.

For more information, see:

• Translation (conversion) rules
• General information on average rates.

Taxation of financial arrangements (TOFA)

If the TOFA rules apply to the SMSF, include assessable income from financial arrangements subject to the TOFA rules at the appropriate item. Complete Section I Taxation of financial arrangements if you include an amount determined under the TOFA rules.

For more information, see Section I: Taxation of financial arrangements.

Family trust distribution tax and trustee beneficiary non-disclosure tax

Don't include at any question in Section B any part of a distribution you receive:

• from a trust or partnership on which family trust distribution tax (FTDT) has been paid (don't show this anywhere in the annual return)
• either directly or indirectly from a closely held trust on which trustee beneficiary non-disclosure tax (TBNT) has been paid (don't show this anywhere in the annual return).

Losses and outgoings that the SMSF incurred in deriving an amount that's excluded from assessable income because FTDT or TBNT has been paid aren't deductible (report them as non-deductible expenses).

The SMSF can't claim a franking credits tax offset for any franking credits attributable to the whole or a part of a dividend that's excluded from assessable income because FTDT or TBNT has been paid.

Non-arm's length income

The factors that you need to consider when deciding whether a transaction is at arm's length or non-arm's length depend on whether the income is:

• private company dividends
• distribution from a trust
• another type of income.

These factors are discussed in the following sections.

Complying SMSFs don't include non-arm's length income at Section B, labels A to T. Instead, they include it at labels:

• U1 Net non-arm's length private company dividends
• U2 Net non-arm's length trust distributions
• U3 Net other non-arm's length income.

For example, non-arm's length unfranked dividends are included at label U1 Net non-arm's length private company dividends instead of at label J Unfranked dividend amount.

However, don't include at labels U1, U2 or U3 the amount of non-arm's length income calculated using the 'Twice the difference approach' that arises from a non-arm's length general expense. Rather, this amount will be taken into account when calculating the ‘Tax on taxable income’ at label T1 in Section D.

The 'twice the difference approach' is twice the difference between the amount that might have been expected to be incurred if the parties had been dealing at arm’s length and the amount actually incurred (including a nil amount).

Non-complying SMSFs don't need to separate their non-arm's length income from their arm's length income. They include both arm's length and non-arm's length income at labels A to T.

Private company dividends that are non-arm's length income

A dividend paid by a private company, or ordinary income or statutory income reasonably attributable to such a dividend, is non-arm's length income unless the amount is consistent with an arm’s length dealing.

To decide whether the amount is consistent with an arm’s length dealing, consider:

• the value of the shares held by the SMSF in the company
• the cost to the SMSF of the shares on which the dividends were paid
• the dividend rate on those shares
• whether dividends have been paid on other shares in the company (and at what rate)
• whether the company has issued shares in lieu of dividends to the SMSF and the circumstances of the issue
• any other relevant matters.

Consider any connection between the private company and the SMSF.

If the SMSF received non-arm's length private company dividends, include it at:

• label U1 Net non-arm's length private company dividends if the SMSF is complying
• the appropriate labels A to T (as if it were arm's length income) if the SMSF is non-complying.

For more information about determining whether income is non-arm's length income, see:

• Non-arm's length income
• Taxation Ruling TR 2006/7 Income tax: special income derived by a complying superannuation fund, a complying approved deposit fund or a pooled superannuation trust in relation to the year of income
• Section 295-550 of the Income Tax Assessment Act 1997 (ITAA 1997).

Trust distributions that are non-arm's length income

A distribution from a trust is non-arm's length income of a complying SMSF if either:

• the SMSF, as beneficiary of a trust, doesn't have a fixed entitlement to income from the trust (generally discretionary trusts) – see, subsection 295-550(4) of the ITAA 1997
• all the following apply
  • the SMSF, as beneficiary of the trust, has a fixed entitlement to the income from the trust (generally unit trusts)
  • as a result of a scheme, the parties weren't dealing with each other at arm's length,
  • either or both of the following apply – see, subsection 295-550(5) of the ITAA 1997)    
    • the amount of income is greater than what might have been expected had the parties been dealing with each other at arm’s length in relation to the scheme
    • the loss, outgoing or expenditure (either revenue or capital in nature) incurred in acquiring the entitlement, or in gaining or producing that income, is less than (including a nil amount) what might have been expected had the parties been dealing with each other at arm's length in relation to the scheme.

If the SMSF receives non-arm's length trust distributions, include it at:

• label U2 Net non-arm's length trust distributions if the SMSF is complying
• label M Gross trust distributions (as if it were arm's length income) if the SMSF is non-complying.

For more information, see:

• Non-arm's length income
• Taxation Ruling TR 2006/7 Income tax: special income derived by a complying superannuation fund, a complying approved deposit fund or a pooled superannuation trust in relation to the year of income
• Law Companion Ruling LCR 2021/2 Non-arm's length income – expenditure incurred under a non-arm's length arrangement
• Section 295-550 of the ITAA 1997.

Identifying other types of income that are non-arm's length

Other types of income (that is, income that isn't a private company dividend or distribution from a trust) are non-arm's length income if, as a result of a scheme the parties to which weren't dealing with each other at arm's length, either or both of the following applies:

• the amount of income is greater than what might have been expected had the parties been dealing with each other at arm’s length in relation to the scheme
• from 1 July 2018, the amount of loss, outgoing or expenditure (either revenue or capital in nature) incurred in gaining or producing the income is less than (including a nil amount) what might have been expected had the parties been dealing with each other at arm's length in relation to the scheme.

Whether income is non-arm's length income depends on all of the circumstances of the relationship including the return on the investment and the commercial risks undertaken by the SMSF. Other non-arm's length income may include, for example:

• interest on loans
• rent from property
• profit on the sale of assets
• net capital gains.

If the SMSF received non-arm's length income that isn't a private company dividend or a trust distribution, include it at:

• label U3 Net other non-arm's length income if the SMSF is complying
• the appropriate label A to T (as if it were arm's length income) if the SMSF is non-complying.

Don't include at labels U1, U2, U3, U or any other label in Section B any non-arm’s length income as a result of non-arm’s length general expenses. These non-arm's length general expenses result in non-arm’s length income calculated using the ‘Twice the difference approach’ and will be taken into account when calculating label T1 Tax on taxable income in Section D.

For more information, see:

• Non-arm's length income
• Taxation Ruling TR 2006/7 Income tax: special income derived by a complying superannuation fund, a complying approved deposit fund or a pooled superannuation trust in relation to the year of income
• Law Companion Ruling LCR 2021/2 Non-arm's length income – expenditure incurred under a non-arm's length arrangement
• Section 295-550 of the ITAA 1997.

Tax treatment of crypto assets

If you acquired crypto assets as an investment or disposed of it in 2025–26, you may have to pay capital gains tax on the disposal. For more information, see Transactions – acquiring and disposing of crypto assets.

If you acquired or disposed of crypto assets (on revenue account) in 2025–26, the cost of acquisition is a deductible expense and the proceeds of disposal is ordinary income. For more information, see Crypto assets used in business.

11 Income

In this section, complete the questions and amounts for the relevant labels.

Capital gains tax questions

This section covers labels:

• Did you have a capital gains tax (CGT) event during the year?
• Have you applied a CGT exemption or rollover?
• Net capital gain

For most CGT events a capital gain or capital loss is the difference between what it cost the SMSF to acquire, hold and dispose of an asset and what the SMSF received or was entitled to receive when it disposed of the asset.

An SMSF's net capital gain forms part of its assessable income.

A capital gain or capital loss that a complying SMSF makes from a CGT event for a segregated current pension asset is disregarded.

If the SMSF makes a capital loss, the SMSF can't claim it against income but can use it to reduce a capital gain in the same income year. If total capital losses exceed total capital gains for the income year, the SMSF has a net capital loss. The SMSF can generally carry the net capital loss forward and deduct it against capital gains in future income years. Net capital losses are applied in the order in which they are made.

All SMSFs that have one or more CGT events during the income year must complete a CGT Schedule. See Capital gains tax schedule 2026 instructions and attach it to the annual return if:

• the total current year capital gains are greater than $10,000
• the total current year capital losses are greater than $10,000
• you have chosen to apply the transitional CGT relief in 2016–17 and a realisation event occurred in 2025–26. For more information, see Law Companion Ruling LCR 2016/8 Superannuation reform: transitional CGT relief for complying superannuation funds and pooled superannuation trusts.

If you have current year capital losses, you may also need to complete a Losses Schedule. See Losses schedule 2026 instructions.

You can calculate the SMSF's net capital gain or loss using the:

• Capital gain or capital loss worksheet 2026
• Capital gains tax schedule 2026 instructions (if required).

Reporting a capital gain or loss in the SMSF annual return

For information about reporting a capital gain or loss in the SMSF annual return, see the instructions for the following:

• Did you have a CGT (capital gains tax) event during the year?
• Have you applied a CGT exemption or rollover?
• Net capital gain
• Net capital losses carried forward to later income years

For information about reporting a capital gain or loss from an asset where the fund is paying a retirement phase income stream, see Methods for calculating exempt current pension income.

Foreign source capital gains

An Australian super fund makes a capital gain or capital loss if a CGT event happens to any of its worldwide CGT assets.

An SMSF that isn't an Australian super fund makes a capital gain or capital loss if a CGT event happens to a CGT asset that's a taxable Australian property.

For more information about CGT events, see CGT events.

Did you have a CGT event during the year?

Print X in the appropriate box, either No or Yes at item 11 – label G.

Answer Yes if the SMSF:

• had a CGT event occur during the income year
• received a share of net income from a trust that includes a capital gain
• is a subsequent participant in a forestry managed investment scheme and had a CGT event as a result of a harvest or a sale of an interest in the forestry managed investment scheme (see Appendix 3: Forestry managed investment schemes).

Have you applied a CGT exemption or rollover?

Did the SMSF have capital gains disregarded or deferred as a result of applying a CGT exemption or rollover?

• No – Print X in the No box at label M.
• Yes – Print X in the Yes box at label M. In the code box at label M, print the appropriate code from Table 2.

If the SMSF has applied more than one CGT exemption or rollover and you are using software that allows it, select all of the codes that apply.

If you are lodging on a paper return, print the code that corresponds to the CGT exemption or rollover that resulted in the largest amount of capital gain disregarded or deferred.

If more than one CGT exemption or rollover applies to the largest amount of capital gain disregarded or deferred, choose the most specific rollover or exemption code that applies. For example, choose the ‘Scrip for scrip rollover (Subdivision 124-M)’ code before the more general rollover ‘Replacement asset rollovers (Division 124)’ code.

If you have chosen to apply the transitional CGT relief in 2016–17 and a realisation event occurred in 2025–26 you must report it in a CGT Schedule. See Capital gains tax schedule 2026 instructions.

Table 2: CGT exemptions and rollover codes

Code	Description
A	Small business 50% reduction (Subdivision 152-C)
B	Small business retirement exemption (Subdivision 152-D)
C	Small business rollover (Subdivision 152-E)
D	Small business 15-year exemption (Subdivision 152-B)
E	Foreign resident CGT exemption (Division 855)
F	Scrip for scrip rollover (Subdivision 124-M)
L	Replacement asset rollover (Division 124)
M	Exchange of shares or units (Subdivision 124-E)
N	Exchange of rights or options (Subdivision 124-F)
O	Exchange of shares in one company for shares in another company (Division 615)
P	Exchange of units in a unit trust for shares in a company (Division 615)
Q	Disposal of assets by a trust to a company (Subdivision 124-N)
S	Same asset rollover (Division 126)
U	Early stage investor (Subdivision 360-A)
V	Venture capital investment (Subdivision 118-F)
X	Other exemptions and rollovers

For more information about CGT exemptions and rollovers, see List of CGT assets and exemptions.

Net capital gain

Did the SMSF have a net capital gain?

• No – Leave label A blank. Go to label B.
• Yes – Print at label A the SMSF's net capital gain.

The SMSF’s net capital gain is the total capital gain for 2025–26 less:

• any 2025–26 capital losses
• any prior year net capital losses
• any other relevant CGT discount or concession.

Show at label A the amount of net capital gain calculated or transferred from:

• label 6A at part 6 of the CGT summary worksheet
• label A at part 6 of the CGT schedule, if any.

When working out the SMSF's net capital gain, include:

• net foreign source capital gains
• the capital gains component of the SMSF's share of net income from a trust
• the capital gains component of the SMSF's share of a distribution from a partnership
• capital gains made by the SMSF from a forestry managed investment scheme (see Appendix 3: Forestry managed investment schemes)
• the capital gain previously deferred under the transitional CGT relief.

If you include an amount at label A that's exempt current pension income, include it also at item 11 – label Y Exempt current pension income.

If you report a distribution from a trust at item 11 – label A, a completed Trust income schedule needs to be attached to the SMSF annual return. See Trust income schedule 2026 instructions.

For more information, see Guide to capital gains tax 2026.

Non-arm's length capital gains

A net capital gain from the sale of a CGT asset by the SMSF is non-arm's length income if, for example, the asset was either:

• sold to a related party for more than the asset’s market value
• originally acquired from a related party for less than the asset’s market value.

Complying SMSFs don't include non-arm's length net capital gains at label A. Show these at Non-arm's length income item 11 – labels U2 or U3.

To calculate the SMSF’s net capital gain, see Calculating your CGT.

Gross rent and other leasing and hiring income

Did the SMSF earn income from renting, leasing or hiring of land, buildings or other assets?

• No – Leave label B blank. Go to label C.
• Yes – Read on.

Write at label B the total income that the SMSF earned from renting, leasing and hiring of land, buildings and other assets. The amount at label B shouldn't be reduced by any loss or outgoing incurred in gaining or producing the income.

If you include an amount at label B that's exempt current pension income, include it also at item 11 – label Y Exempt current pension income.

Don't include at label B rental, leasing or hiring income that's:

• derived from foreign sources (write it at item 11 – label D1 Gross foreign income)
• part of a distribution from a partnership (write it at item 11 – label I Gross distribution from partnerships)
• included in a share of net income from a trust (write it at item 11 – label M Gross trust distributions)
• non-arm's length income of a complying SMSF (write it at item 11 – label U3 Net other non-arm's length income).

Gross interest

Did the SMSF earn interest income from an Australian source?

• No – Leave label C blank. Go to label X.
• Yes – Read on.

Write at label C the total interest income that the SMSF earned in 2025–26. The amount at label C shouldn't be reduced by any loss or outgoing incurred in gaining or producing the income.

Include at label C:

• interest earned on money (for example)  
  • in a bank (or similar institution) account
  • that the SMSF has lent to another person or organisation
• interest that's paid by us or credited against another SMSF liability because the SMSF paid a tax liability early.

If you include an amount at label C that's exempt current pension income, include it also at item 11 – label Y Exempt current pension income.

Don't include interest income that's:

• derived from foreign sources (write it at item 11 – label D1 Gross foreign income)
• part of a distribution from a partnership (write it at item 11 – label I Gross distribution from partnerships)
• non-share dividends received from holding a non-share equity interest (write it at item 11 – labels J Unfranked dividend amount, K Franked dividend amount and L Dividend franking credit as applicable; for more information, see Guide to the debt and equity tests)
• included in a share of net income from a trust (write it at item 11 – label M Gross trust distributions)
• non-arm's length income of a complying SMSF (write it at item 11 – label U3 Net other non-arm's length income).

Forestry managed investment scheme income

Did the SMSF earn income from a forestry managed investment scheme (FMIS)?

• No – Leave label X blank. Go to labels D1 and D.
• Yes – Read on.

Write at label X the SMSF's income from all FMISs. The amount at label X shouldn't be reduced by any loss or outgoing incurred in gaining or producing the income.

You can read more about calculating FMIS income at Appendix 3: Forestry managed investment schemes.

If you include an amount at label X that's exempt current pension income, include it also at item 11 – label Y Exempt current pension income.

Don't include capital gains from an FMIS at label X; include these capital gains when working out the SMSF's net capital gain to show at item 11 – label A Net capital gain.

For more information on the CGT treatment of the SMSF’s forestry interests, see Forestry managed investment scheme interests in the Guide to capital gains tax 2026.

If the SMSF is a member of a collapsed agribusiness managed investment scheme, see Collapse and restructure of agribusiness managed investment schemes – participant information.

Foreign income questions

Did the SMSF have foreign income or losses in 2025–26?

• No – Leave labels D and D1 blank. Go to label E.
• Yes – Read on.

An Australian super fund is taxed on its worldwide income and must declare all income it earned from foreign sources.

Foreign income of the SMSF may be taxed in the foreign country. If the SMSF has paid foreign income tax it may be entitled to an Australian foreign income tax offset.

Gross foreign income

Write at label D1 the SMSF's gross assessable income from foreign sources in 2025–26. The amount at label D1 shouldn't be reduced by any loss or outgoing related to the income.

The SMSF's gross assessable foreign income includes income from foreign sources and any foreign tax paid on that income and without reducing it for any expenses incurred in gaining or producing that income. If the SMSF is unable to report the gross (pre-tax) amount of foreign source income on its share of net income from a trust, it can include the net (after-tax) amount at label D1 instead.

Include at label D1:

• dividends, supplementary dividends and other dividends from foreign companies (including New Zealand franking companies that provide Australian franking credits)
• interest from foreign sources
• foreign source income included a share of net income from a trust (don't include this at item 11 – label M Gross trust distributions)
• foreign source income included in a distribution from a partnership (don't include this at item 11 – label I Gross distributions from partnerships)
• attributable income through the controlled foreign company (CFC) regime.

Don't include:

• losses or deductible expenses from a foreign source (include these at item 11 – label D Net foreign income)
• Australian franking credits attached to New Zealand franking company dividends (include these at item 11 – label E Australian franking credits from a New Zealand company)
• foreign exchange gains and losses from both foreign and domestic sources (write gains at item 11 – label S Other income and losses at Section C, item 12 – labels L1 or L2 Other amounts)
• foreign source capital gains and losses (net capital gains should be included at item 11 – label A Net capital gain)
• foreign income that's non-arm's length income of a complying SMSF (include this at Non-arm's length income item 11 – labels U1, U2, or U3).

If you report a distribution from a trust at item 11 – label D1, a completed Trust income schedule 2026 needs to be attached to the SMSF annual return.

Net foreign income

You must complete label D, if you write a value at label D1.

Write at label D the SMSF's net income from foreign sources in 2025–26.

To calculate the SMSF's net foreign income, take the amount at label D1 Gross foreign income and subtract both:

• foreign source losses incurred in 2025–26 (but not CGT losses)
• deductible expenses to the extent to which they were incurred in producing that foreign income.

If the total amount at label D is negative, print L in the Loss box.

If you include an amount at label D that's exempt current pension income, include it also at item 11 – label Y Exempt current pension income.

Don't subtract debt deductions in calculating net foreign income at label D, except where they are attributable to an overseas permanent establishment of the SMSF. Include the debt deductions at the relevant item in Section C.

Australian franking credits from a New Zealand company

Dividends paid by New Zealand resident companies don't normally carry Australian franking credits. However, a New Zealand company can choose to join the Australian imputation system and distribute Australian franking credits with its dividends. The company may be referred to as a New Zealand franking company.

Did the SMSF receive Australian franking credits attached to a distribution from a New Zealand company?

• No – Leave label E blank. Go to label F.
• Yes – Read on.

Write at label E the total Australian franking credits, attached to assessable franked distributions from New Zealand franking companies, that the SMSF received in 2025–26. The amount at label E shouldn't be reduced by any loss or outgoing incurred in gaining or producing the income.

The SMSF must have included the assessable franked distribution at item 11 –label D1 Gross foreign income. To work out whether the distribution is assessable in Australia, see the Foreign income return form guide.

If the SMSF received a supplementary dividend (or a share of it), in connection with the franked dividend, and the SMSF is entitled to a foreign income tax offset because the franked dividend is included in the SMSF's assessable income, you must reduce the Australian franking credits that the SMSF received directly or indirectly from a New Zealand company by the amount of the supplementary dividend (or the SMSF's share of it).

If the shares or interests aren't held at risk as required under the holding period and related payments rules, or there is manipulation of the imputation system, don't include the Australian franking credit in assessable income at label E and there is no entitlement to a franking tax offset.

You must also include the Australian franking credits that you include here at label E, at either Section D, item 13 – label:

• E1 Complying fund’s franking credits tax offset if the SMSF is a complying fund
• C2 Rebates and tax offsets if the SMSF is a non-complying fund.

The amount at label E could include any Australian franking credits attached to assessable franked distributions that the SMSF received from a New Zealand franking company either:

• directly
• indirectly through a partnership or trust.

Don't include:

• the dividend from the New Zealand company (include this at item 11 – label D1 Gross foreign income)
• New Zealand imputation credits (you can't claim New Zealand imputation credits in Australia)
• franking credits attached to a dividend that's non-arm's length income of a complying SMSF (include these at item 11 – label U1 Net non-arm's length private company dividends).

For more information, see:

• Trans-Tasman imputation special rules
• Subdivision 220-B of the ITAA 1997.

Transfers from foreign funds

Did the SMSF receive amounts transferred from foreign super funds?

• No – Leave label F blank. Go to label H.
• Yes – Read on.

Write at label F the total of the following amounts transferred in 2025–26 from foreign super funds and schemes to a complying SMSF:

• the amount transferred that the former member of the foreign fund has made a written choice to have included in the SMSF's assessable income (under section 305-80 and subsection 295-200(2) of the ITAA 1997)
• assessable amounts transferred where the transferred amounts were in excess of what was 'vested' in the member of the foreign fund at the time of transfer (subsection 295-200(1) of the ITAA 1997).

The amount at label F shouldn't be reduced by any loss or outgoing incurred in gaining or producing the income.

Write in the Number box the number of transfers received from foreign super funds or schemes during 2025–26 that meet the criteria above.

Other transfers from foreign super funds or schemes aren't assessable income for the SMSF (although they may be assessable income that needs to be reported in the member's personal income tax return). For more information, see Tax on transfers from foreign super funds.

Transfers from foreign super funds or schemes aren't exempt from income tax under the exempt current pension income rules.

For more information, see sections 295-200 and 305-80 of the ITAA 1997.

Gross payments where ABN not quoted

Did the SMSF receive payments from which the payer had withheld an amount because the SMSF had not provided its ABN?

• No – Leave label H blank. Go to label I.
• Yes – Read on.

Write at label H the gross value of all payments made to the SMSF where payers withheld an amount because the SMSF hadn't provided its ABN. The amount at label H shouldn't be reduced by any loss or outgoing incurred in gaining or producing the income.

The amount that you write at label H must be the gross value, that is, it must include both the amounts paid to the SMSF and the amounts that payers withheld.

The payers must give you a PAYG payment summary (or equivalent information) with their payment or as soon as practical after they make the payment. The PAYG payment summary:

• includes the information that you need to complete at label H
• must be kept with your tax records.

For more information see Record-keeping requirements.

You must also:

• include the corresponding credit for the tax withheld at Section D, item 13 –label H3 Credit for tax withheld – where ABN or TFN not quoted (non-individual)
• complete and attach a Non-individual PAYG payment summary schedule 2026 (NAT 3422, PDF 262KB)This link will download a file.

If you include an amount at label H that's exempt current pension income, include it also at item 11 – label Y Exempt current pension income.

For more information, see:

• PAYG withholding
• Division 18 of Schedule 1 of the Taxation Administration Act 1953.

Gross distribution from partnerships

Did the SMSF receive any gross distributions from partnerships?

• No – Leave label I blank. Go to labels J, K, L Dividends and franking credits.
• Yes – Read on.

Write at label I the total of all gross distributions from partnerships received in 2025–26. If the total amount is a loss, print L in the LOSS box.

A distribution from a partnership can include different types of income. Include all types of income included in the distribution at label I except:

• capital gains (include these at item 11 – label A Net capital gain)
• foreign income, including New Zealand franking company dividends and supplementary dividends (include it at item 11 – label D1 Gross foreign income)
• part of a distribution on which family trust distribution tax or trustee beneficiary non-disclosure tax has been paid (don't include anywhere in Section B: Income)
• franking credits, if the SMSF isn't entitled to a corresponding tax offset (don't include these anywhere in the SMSF annual return)
• the SMSF’s share of net income from PSTs
• non-arm's length income of a complying SMSF (include it at item 11 – label U3 Net other non-arm's length income).

For example, if a distribution from a partnership includes interest, include this interest income at label I rather than at item 11 – label C Gross interest.

If the partnership distributions included franking credits attached to dividends and the SMSF is entitled to a corresponding franking credits tax offset (see Entitlement to franking credits tax offset), include the amount of the franking credit at label I and also at either Section D item 13 – label:

• E1 Complying fund’s franking credits tax offset if the SMSF is a complying fund
• C2 Rebates and tax offsets if the SMSF is a non-complying fund.

If partnership distributions included amounts subject to foreign resident withholding in Australia, include the SMSF's share of credit for foreign resident withholding at label I and also at Section D, item 13 – label H2 Credit for tax withheld – foreign resident withholding.

If you include an amount at label I that's exempt current pension income, include it also at item 11 – label Y Exempt current pension income.

Keep a record of the following:

• full name of the partnership
• TFN of the partnership, if known
• amount of income.

For more information, see Record-keeping requirements.

Dividends and franking credits

Was the SMSF paid dividends?

• No – Leave labels J, K and L blank. Go to label M.
• Yes – Read on.

Dividends and non-share dividends from Australian entities may carry franking credits. We call such dividends franked dividends. Franking credits reflect tax the company has paid.

Dividends and non-share dividends with no franking credits are called unfranked dividends.

An SMSF's assessable income includes:

• unfranked dividends (include these at label J Unfranked dividend amount)
• franked dividends (include these at label K Franked dividend amount)
• franking credits (include these at label L Dividend franking credit if the SMSF is entitled to a corresponding tax offset).

Include non-share dividends at labels J, K and L in the same way as dividends. For more information about non-share dividends see Guide to the debt and equity tests.

If the SMSF was paid a dividend from a private company, you must establish if the dividend is non-arm's length income. If the SMSF is a complying SMSF and it is non-arm's length income, include the dividend and franking credit at item 11 – label U1 Net non-arm's length private company dividends instead of at labels J, K or L.

Unfranked dividend amount

Was the SMSF paid unfranked dividends, including unfranked non-share dividends?

• No – Leave label J blank. Go to label K.
• Yes – Read on.

Write at label J the total amount of unfranked dividends, and unfranked non-share dividends, that were paid to the SMSF. The amount at label J shouldn't be reduced by any loss or outgoing incurred in gaining or producing the income.

If you include an amount at label J that's exempt current pension income, also include it at item 11 – label Y Exempt current pension income.

Don't include unfranked dividends:

• that are a share of net income from a trust (include these at item 11 – label M Gross trust distributions)
• that are part of a distribution from a    
  • partnership (include these at item 11 – label I Gross distribution from partnerships)
  • pooled development fund (don't include the distribution anywhere in the SMSF's assessable income as it is exempt income but take it into account when calculating Section C item 12 – label M1 Tax losses deducted in section C)
• from a New Zealand franking company (include these at item 11 – label D1 Gross foreign income)
• on which family trust distribution tax has been paid
• that are non-arm's length income of a complying SMSF (include these at item 11 – label U1 Net non-arm's length private company dividends).

Franked dividend amount

Was the SMSF paid franked dividends, including franked non-share dividends?

• No – Leave label K blank. Go to label M
• Yes – Read on.

Write at label K the total amount of franked dividends, and franked non-share dividends, that were paid to the SMSF. The amount at label K shouldn't be reduced by any loss or outgoing incurred in gaining or producing the income.

If you include an amount at label K that's exempt current pension income, also include it at item 11 – label Y Exempt current pension income.

Don't include:

• franking credits (include these at item 11 – label L Dividend franking credit)
• franked dividends that' are a share of net income from a trust (include these at item 11 – label M Gross trust distributions)
• franked dividends that' are part of a distribution from a partnership (include these at item 11 – label I Gross distribution from partnerships)
• franked dividends that' are part of a distribution from a pooled development fund (unless you have elected to include the franked dividends in the SMSF's assessable income)
• franked dividends from a New Zealand franking company (include these at item 11 – label D1 Gross foreign income)
• franked dividends on which family trust distribution tax has been paid
• franked dividends that' are non-arm's length income of a complying SMSF (include these at item 11 – label U1 Net non-arm's length private company dividends).

Dividend franking credit

Were franking credits attached to dividends paid to the SMSF for which it is entitled to a franking credits tax offset?

• No – Leave label L blank. Go to label M.
• Yes – Read on.

Write at label L the total amount of the franking credits:

• attached to franked dividends, and franked non-share dividends, paid to the SMSF in 2025–26
• for which the SMSF is entitled to a franking credits tax offset (see Entitlement to franking credits tax offset).

In addition to including a franking credit at label L, you must also include it at either Section D – label:

• E1 Complying fund’s franking credits tax offset if the SMSF is a complying fund
• C2 Rebates and tax offsets if the SMSF is a non-complying fund.

If you include an amount at label L that's exempt current pension income, also include it at item 11 – label Y Exempt current pension income.

Don't reduce the amount at label L by any loss or outgoing you incur in gaining or producing the income.

Don't include:

• the dividend that the franking credit is attached to (include it at item 11 – label K Franked dividend amount)
• franking credits where the SMSF isn't entitled to a franking credits tax offset (don't include these anywhere on the SMSF annual return)
• franking credits that are part of a share of net income from a trust (include these at item 11 – label M Gross trust distributions)
• franking credits that are part of a distribution from a partnership (include these at item 11 – label I Gross distribution from partnerships)
• Australian franking credits from a New Zealand franking company (include these at item 11 – label E Australian franking credits from a New Zealand company)
• franking credits that are part of a distribution from a pooled development fund (unless you have elected to include franked dividends and thus the franking credits in the SMSF's assessable income)
• franking credits on which family trust distribution tax has been paid
• franking credits attached to a dividend that's non-arm's length income of a complying SMSF (include these at item 11 – label U1 Net non-arm's length private company dividends).

Gross trust distributions

Did the SMSF receive, or was the SMSF entitled to receive, a share of net income from other trusts?

• No – Leave label M blank. Go to labels R1, R2, R3, R6, R Assessable contributions.
• Yes – Read on.

Write at label M the total share of net income that the SMSF received or was entitled to receive from other trusts. The amount at label M can't be a loss. Complete the code box to the right of label M, according to Table 3.

If you report a distribution from a trust at item 11 – label M, a completed Trust income schedule 2026 needs to be attached to the SMSF annual return.

A share of net income from a trust can include different types of income. Include at label M all types of income that are included in a share of net income from a trust except:

• capital gains (include these at item 11 – label A Net capital gain)
• foreign income, including New Zealand franking company dividends and supplementary dividends (include it at item 11 – label D1 Gross foreign income)
• a share of net income on which family trust distribution tax or trustee beneficiary non-disclosure tax has been paid (don't include anywhere in Section B: Income)
• franking credits if the SMSF isn't entitled to a corresponding tax offset (don't include these anywhere in the SMSF annual return)
• non-arm's length income of a complying SMSF (include it at item 11 – label U2 Net non-arm's length trust income).

If the share of net income from trusts included franking credits attached to dividends and the SMSF is entitled to a corresponding franking credits tax offset (see Entitlement to franking credits tax offset), include the amount of the franking credit at label M and also at either Section D – label:

• E1 Complying fund’s franking credits tax offset if the SMSF is a complying fund
• C2 Rebates and tax offsets if the SMSF is a non-complying fund.

If the share of net income from trusts included amounts subject to foreign resident withholding in Australia, include the SMSF's share of credit for foreign resident withholding at label M and also at Section D, item 13 – label H2 Credit for tax withheld – foreign resident withholding.

The share of net income at label M may include payments from a closely held trust, including the SMSF's share of credits if any amounts were withheld because a TFN wasn't provided. If amounts were withheld because a TFN wasn't provided then the SMSF's share of credits for the withheld amounts are included at Section D, item 13 – label H5 Credit for TFN amounts withheld from payments from closely held trusts.

If you include an amount at label M that's exempt current pension income, also include it at item 11 – label Y Exempt current pension income.

A distribution from a trust is non-arm's length income if either:

• the SMSF doesn't have a fixed entitlement to income from that trust (for example, it is a discretionary trust)
• the SMSF has a fixed entitlement to income from the trust (generally unit trusts), and the income is derived under a scheme where the parties weren't dealing with each other at arm's length and either or both of the following applies (see subsection 295-550(5) of the ITAA 1997)    
  • the amount of income is greater than might have been expected had the parties been dealing with each other at arm’s length in relation to the scheme
  • from 1 July 2018, the loss, outgoing or expenditure (either revenue or capital in nature) incurred in acquiring the entitlement, or in gaining or producing the income, is less than (including a nil amount) what might have been expected had the parties been dealing with each other at arm's length in relation to the scheme.

Keep a record of the:

• full name of the trust
• TFN of the trust
• amount paid by the trust to the SMSF.

For more information about record keeping, see Record-keeping requirements.

Code – gross trust distributions trust type

You must print a letter from Table 3 in the code box to the right of label M Gross trust distributions if you write an amount at label M.

Print the letter from Table 3 that best describes the type of trust from which you received the income you wrote at label M. If this income is from more than one type of trust, print the letter that describes the type of trust from which you received the greatest amount of income.

If you can't identify the type of trust from which the SMSF received a share of net income, contact the trustee of that trust.

Table 3: Trust type codes

Code letter	Type of trust
D	Deceased estate
E	Testamentary trust A trust that resulted from a will, codicil, court order, or intestacy.
F	Fixed trust (other than the fixed unit trusts and public unit trusts described at codes U, P and Q) A fixed trust is a trust in which persons have fixed entitlements to all of the income and capital of the trust at all times during the income year. The ‘fixed entitlement’ test operates in the manner described in Taxation Ruling TR 2006/7.
H	Hybrid trust A hybrid trust is a trust which isn't a fixed trust but in which persons have fixed entitlements to income or capital of the trust during the income year. The ‘fixed entitlement’ test operates in the manner described in Taxation Ruling TR 2006/7.
S	Discretionary trust – where the main source of income of the trust is from service and management activities A discretionary trust is a trust: which is neither a fixed trust nor a hybrid trust, and under which a person or persons benefit from income or capital of the trust upon the exercise of a discretion by a person or persons, usually the trustee.
T	Discretionary trust – where the main source of income of the trust is from trading activities
I	Discretionary trust – where the main source of income of the trust is from investment activities
M	Cash management unit trust A cash management unit trust is a unit trust which: pools the funds of separate unit holders, and primarily invests in a range of short-term securities.
U	Fixed unit trust (including a Corporate Collective Investment Vehicle (CCIV) sub-fund trust; other than a public trust described in codes P or Q) A fixed unit trust is a fixed trust in which interest in the income and capital of the trust are represented by units.
P	Public unit trust – listed (other than a cash management unit trust) A public unit trust is a fixed unit trust which is a widely held unit trust (as defined in section 272-105 of Schedule 2F to the Income Tax Assessment Act 1936) at all times during the income year.
Q	Public unit trust – unlisted (other than a cash management unit trust) A public unit trust in which none of its units were listed for quotation in the official list of a stock exchange in Australia or elsewhere during the income year.

 

Assessable contributions

Did the SMSF have assessable contributions?

• No – Leave labels R1, R2 and R6 blank. Answer labels R3 and R.
• Yes – Read on.

Include at labels R1, R2, R3 and R6 all contributions to the SMSF that are assessable income.

The following types of contributions aren't part of the SMSF’s assessable income, don't include them at labels R1, R2, R3 or R6:

• contributions made by a member that aren't assessable personal contributions
• super co-contributions and government super contributions
• contributions for a person under 18 which aren't made by, or on behalf of, the person’s employer
• amounts transferred to the SMSF for a member from the member's spouse's super as a result of a contributions splitting arrangement (for more information, see Contributions splitting)
• contributions paid by a member's spouse to the SMSF, to satisfy a super agreement or Family Law Court order, where there is a splitting of a superannuation interest due to marriage or relationship breakdown
• spouse contributions for which the contributor can't claim a deduction
• contributions where a member has elected to treat the contribution as a re-contribution of a COVID-19 early release amount.

For more information, see Subdivision 295-C of the ITAA 1997.

Contributions caps

Caps apply to contributions made to a member’s super account. Members that contribute more than these caps may have to pay extra tax. For more information on the contributions caps, see Cap limits and tax on super contributions.

Assessable employer contributions

Did the SMSF receive assessable employer contributions?

• No – Leave label R1 blank. Go to label R2.
• Yes – Read on.

Write at label R1 the total of all assessable contributions received by the SMSF for members where the contribution was made by someone other than the member. The amount at label R1 shouldn't be reduced by any loss or outgoing incurred in gaining or producing the income.

Assessable employer contributions received in 2025–26 must be included at label R1 even if they weren't allocated to the member’s account until the following financial year.

The amount at label R1 includes:

• contributions paid by an employer (including amounts contributed under effective salary sacrifice arrangements) to  
  • a complying SMSF
  • a non-complying SMSF that's an Australian super fund
  • an SMSF that's a non-complying superannuation fund that's a foreign superannuation fund where the contributions relate to a period when the member was an Australian resident, or was a foreign resident deriving employment or similar income, such as salary or wage income, that's subject to Australian withholding payment rules
• shortfall amounts paid by us to a complying SMSF under the provisions of the Superannuation Guarantee (Administration) Act 1992
• amounts transferred by us from the Superannuation Holding Account special account to a complying SMSF under the provisions of the Small Superannuation Accounts Act 1995, other than amounts which represent super co-contributions or low income super amounts
• most amounts contributed for a member by other third parties (the total of any amounts written in sections F and G at label G Other third party contributions).

Don't include contributions received for a member who hasn't quoted their TFN and that you are required to include at label R3 No-TFN-quoted contributions.

Assessable contributions from employers or other third parties aren't exempt from income tax under the exempt current pension income rules.

Assessable personal contributions

Did the SMSF receive assessable personal contributions?

• No – Leave label R2 blank. Go to label R3.
• Yes – Read on.

Write at label R2 the total of:

• assessable personal contributions
• any untaxed element of a rollover super benefit, up to the untaxed plan cap amount ($1.865million in 2025–26).

The amount of a rollover super benefit with an untaxed element is included in the income year in which it is received by the SMSF.

The amount at label R2 shouldn't be reduced by any loss or outgoing incurred in gaining or producing the income.

Assessable personal contributions received in 2025–26 must be included at label R2 even if they weren't allocated to the member’s account until the following financial year.

Personal contributions are assessable only if the member has provided a valid notice stating their intent to claim a deduction for their contributions by the required date and the SMSF trustee has acknowledged receipt of the notice. The contribution is included in the income year in which it is received if the SMSF trustee receives the notice by the time the SMSF lodges its annual return for that income year. Otherwise, the contribution is included in the income year in which the notice is received. For information about deductions for a personal super contribution, see Notice of intent to claim or vary a deduction for personal super contributions.

If the SMSF receives a notice varying the amount of a previous valid Notice of intent to claim a deduction for personal super contributions and:

• you haven't yet lodged the annual return that includes the contribution as assessable income, write at label R2 the reduced amount of the personal contribution, or
• you have already lodged an annual return that included the contribution as assessable income then you can either  
  • amend the annual return for the income year that included the contribution as assessable income
  • deduct an amount at Section C, item 12 – label L1 Other amounts, in the income year the SMSF received the notice varying the amount.

Assessable personal contributions aren't exempt from income tax under the exempt current pension income rules.

For more information, see Notice of intent to claim or vary a deduction for personal super contributions.

No-TFN-quoted contributions

Did the SMSF receive employer contributions for a member that hasn't provided their TFN to the SMSF?

• No – Write 0 (zero) at label R3. Go to label R6.
• Yes – Read on.

Write at label R3 the total of all assessable contributions that the SMSF received in 2025–26 for all members who hadn't quoted their TFN and where either:

• a member's account was opened on or after 1 July 2007
• a member's total assessable contributions for 2025–26 were more than $1,000.

The amount at label R3 shouldn't be reduced by any loss or outgoing incurred in gaining or producing the income.

Don't include employer contributions at label R3 if both:

• the member's account was opened before 1 July 2007
• the member's total assessable contributions for 2025–26 are $1,000 or less (include these employer contributions at label R1 Employer contributions).

Label R3 is mandatory. If you leave label R3 blank, you will have specified a zero amount.

Tax on no-TFN-quoted contributions

The SMSF has to pay additional tax on no-TFN-quoted contributions. This additional tax must be paid regardless of any tax offsets or amounts the SMSF may have transferred to a life insurance company or PST. For the tax rates, see table 4.

Table 4: Tax rates on no-TFN-quoted contributions

SMSF status	Tax rate (on all assessable contributions)	Additional tax rate (on no-TFN-quoted contributions)	Overall tax rate (on no-TFN-quoted contributions)
Complying	15%	32%	47%
Non-complying	45%	2%	47%

The SMSF will show in Section D: Income tax calculation statement:

• the tax payable (at the standard rate of income tax) on the no-TFN-quoted contributions at label T1 Tax on taxable income
• the additional tax payable on the no-TFN-quoted contributions at label J Tax on no-TFN-quoted contributions.

No-TFN-quoted contributions aren't exempted from income tax under the exempt current pension income rules.

If a member provided their TFN to the SMSF for the first time in 2025–26, the SMSF may be able to recover the no-TFN-quoted contributions tax it paid in one of the most recent 3 income years ending before 2025–26 by claiming a no-TFN tax offset. For information on whether the SMSF is able to claim this offset, see Section D, item E2 No-TFN tax offset.

For more information, see Section 295-610 of the ITAA 1997.

Transfer of liability to life insurance company or PST

Did the SMSF transfer an amount to a life insurance company or pooled superannuation trust (PST) under an agreement that meets the requirements of section 295-260 of the ITAA 1997?

• No – Leave label R6 blank. Go to label R.
• Yes – Read on.

Write at label R6 the total amount that would otherwise have been included in the complying SMSF's assessable income for 2025–26 that the trustee of the SMSF (the transferor) has agreed to transfer to a life insurance company or PST (the transferee) under an agreement with that transferee entity. The amount at label R6 shouldn't be reduced by any loss or outgoing incurred in gaining or producing income.

A complying SMSF won't pay tax (at the rate of 15%) on the amount transferred to the life insurance company or PST. The amount of the income transferred is included in the transferee’s assessable income instead. However, if a contribution is a no-TFN-quoted contribution, the complying SMSF must still pay tax on the no-TFN-quoted contribution (at the rate of 32%); the complying SMSF can't transfer the tax liability on the no-TFN-quoted contribution income.

Keep all relevant documents as evidence of the transferee’s consent to accept the transfer of assessable contributions and the associated tax liability.

For more information, see Section 295-260 of the ITAA 1997.

Assessable contributions

Did you write amounts at labels R1, R2, R3 or R6?

• No – Leave label R blank. Go to label S.
• Yes – Read on.

Write at label R the total assessable contributions received by the SMSF. That total shouldn't be reduced by any loss or outgoing incurred in gaining or producing the income.

To work out the amount you write at label R:

• add the amounts you wrote, at labels  
  • R1 Assessable employer contributions
  • R2 Assessable personal contributions
  • R3 No-TFN-quoted contributions
• subtract from that amount (R1 + R2 + R3), the amount at label  
  • R6 Transfer of liability to life insurance company or PST.

Assessable contributions aren't exempt from income tax under the exempt current pension income rules.

Other income

Did the SMSF receive any income that isn't included at another item in Section B?

• No – Leave label S blank. Go to label T.
• Yes – Read on.

Write at label S any assessable income of the SMSF that doesn't fall into any other category in Section B. The amount at label S shouldn't be reduced by any loss or outgoing incurred in gaining or producing the income.

Write in the code box the letter from Table 5 that best describes the greatest amount you include at label S Other income.

If you include an amount at label S that's exempt current pension income, include it also at label Y Exempt current pension income.

Table 5: Codes for other income

Code letter	Type of income
B	Assessable balancing adjustment amount
C	Listed investment company capital gain amount
F	Forex gains
R	Income from premium you pay for death or disability benefits
T	Taxation of financial arrangements (TOFA) amounts
W	Gross payments subject to foreign resident withholding (excluding capital gains)
O	Other types of income not listed above

Assessable balancing adjustment amount – code B

If the SMSF stops holding part or all of a depreciating asset, or expects never to use it again, you need to calculate a balancing adjustment amount which you include at either:

• label S Other income (this question) if the balancing adjustment is assessable income
• section C, item 12 – label L1 Other amounts (deductions) or label L2 Other amounts (non-deductible expenses) if the balancing adjustment is a deduction.

For more information, see Guide to depreciating assets 2026.

Listed investment company (LIC) capital gain amount – code C

If the SMSF received a distribution from a partnership, or a share of net income from a trust and if that partnership or trust claimed a deduction for a LIC capital gain amount, you must include at label S:

• one-third of its share of the deduction claimed by the partnership or trust, if the SMSF is a complying fund
• its entire share of the deduction claimed by the partnership or trust, if the SMSF is a non-complying fund.

Foreign exchange (forex) gain – code F

If the SMSF has any assessable foreign exchange gains that haven't been shown at any other category of income, include the total of such gains at label S.

For more information, see Foreign exchange gains and losses.

Income from premium you pay for death or disability benefits – code R

The SMSF, if it is a complying SMSF, has this type of income if it received a rebate on, or refund of, an insurance premium during 2025–26 where the original insurance premium:

• was to provide super benefits in the event of  
  • death
  • a terminal medical condition
  • disability or temporary inability to engage in gainful employment, and
• the SMSF was allowed a deduction in respect of the original premium (at section C, item 12 – label F1 Insurance premiums members) in the SMSF annual return.

You must include the amount of rebate or refund received as income at label S and use Code R.

For more information, see item 4 of the table in Section 295-320 and Section 295-465 of the ITAA 1997.

Taxation of financial arrangements (TOFA) amounts – code T

If the TOFA rules apply to calculate an assessable gain or deductible loss on the SMSF’s financial arrangements, include at label S any assessable gains relating to financial arrangements. TOFA amounts that have been included elsewhere shouldn't be included here.

Complete Section I: Taxation of financial arrangements if you include at label S an amount determined under the TOFA rules.

For more information about whether the TOFA rules apply, see Section I: Taxation of financial arrangements.

Gross payments subject to foreign resident withholding – code W

Only an SMSF that's a foreign fund should have a gross payment subject to foreign resident withholding in Australia.

Gross payments subject to foreign resident withholding (excluding capital gains) refers to payments made to the SMSF where the payer withheld an amount from the payment because the SMSF is a foreign fund.

The amount that you write at label S must be the gross value. That means that the amount you write must include both the amount:

• paid to the SMSF
• that payers withheld from these payments.

These payers must provide you with a PAYG payment summary by 14 July following the end of the financial year. The PAYG payment summary has the information that you need to include at label S.

If you write an amount at label S for gross payments subject to foreign resident withholding in Australia, you must also complete and attach a Non-individual PAYG payment summary schedule. Keep the PAYG payment summary (or equivalent information) with your tax records.

The amount you write at label S for gross payments subject to foreign resident withholding in Australia doesn't include:

• payments received by an Australian SMSF that was subject to foreign resident withholding in another country (include these at item 11 – label D1 Gross foreign income)
• payments subject to foreign resident withholding in Australia that were distributed to the SMSF from partnerships or included in a share of net income from trusts (include these at item 11 – label I Gross distribution from partnerships or item 11 – label M Gross trust distributions as appropriate)
• payments where the amount of foreign resident withholding in Australia was reduced to nil because the income wasn't taxable under a double tax agreement.

If you include a gross payment subject to foreign resident withholding in Australia at label S, you can also claim a credit for tax withheld at Section D, item 13 – label H2 Credit for tax withheld – foreign resident withholding.

For more information, see Division 18 of Schedule 1 of the Taxation Administration Act 1953.

Other types of income not listed above – code O

If the greatest amount that you include at label S Other income isn't one of the types of income listed above for codes B, C, F, R, T or W, then use code O for 'other'.

Assessable income due to changed tax status of fund

Did the SMSF change from a complying to non-complying fund, or from a foreign fund to an Australian super fund?

• No – Leave label T blank. Go to labels U1, U2, U3 and U.
• Yes – Read on.

Write at label T the amount that's to be included in the SMSF’s assessable income because it changed from either:

• complying to non-complying at the beginning of 2025–26
• a foreign fund to an Australian super fund at the beginning of 2025–26.

The amount at label T shouldn't be reduced by any loss or outgoing incurred in gaining or producing the income.

You must:

• work out the amount of ordinary income and statutory income from previous years using the appropriate formula below
• write the amount you worked out at label T.

A change in the SMSF's compliance or residency status can change its tax rate (see the tax rates at Section D, item 13 – label T1 Tax on taxable income).

Assessable income arising from a change in the tax status of the SMSF isn't exempt from income tax under the exempt current pension income rules.

The SMSF became a non-complying SMSF for 2025–26

If the SMSF was a complying SMSF at the end of 2024–25 and became a non-complying SMSF for 2025–26, include at label T an amount calculated using formula A. Including this amount at label T means that the SMSF loses the benefit of the tax concessions that it had when it was a complying SMSF.

Formula A

Asset value minus non-concessional contributions equals assessable amount to be included at label T

Asset value is the total market value of the SMSF’s assets at 30 June 2025 (that is, immediately before the start of the income year in which the SMSF became non-complying).

Non-concessional contributions are the total of both:

• the part of the crystallised undeducted contributions that relate to the period after 30 June 1983
• the contributions segment for current members at the time that haven't been, and can't be, deducted.

Write at label T the amount you calculated using formula A.

When you work out Section D, item 13 – label T1 Tax on taxable income in, the amount you worked out using formula A is taxed at 45%.

Legislation

Sections 295-320 and 295-325 of the ITAA 1997

The SMSF changed from a foreign fund to an Australian super fund

If the SMSF was a foreign super fund for 2024–25 and became an Australian super fund for 2025–26, include at label T an amount calculated using formula B.

Formula B

Asset value minus member contributions equals assessable amount to be included at label T

Asset value is the total market value of the SMSF’s assets at 30 June 2025 (that is, immediately before the start of the income year in which the SMSF became an Australian super fund).

Member contributions is the amount in the SMSF at that time representing contributions made by current members.

Write at label T the amount you worked out using formula B.

When you calculate Section D, item 13 – label T1 Tax on taxable income the amount you worked out using formula B is taxed at:

• 15% if the fund changed from a foreign fund to a complying Australian super fund
• 45% if the fund changed from a foreign fund to a non-complying Australian super fund.

Note that the SMSF isn't entitled to a tax offset (at Section D, item 13 – label C1 Foreign income tax offset) for foreign income tax paid before the start of the income year on income reported at label T as a result of the change in the tax status of the SMSF.

For more information. see Sections 295-320 and 295-330 of the ITAA 1997.

Non-arm's length income

Did the SMSF receive non-arm's length income?

• No – Leave labels U1, U2, U3 and U blank. Go to label W.
• Yes – Read on.

Was the SMSF a complying SMSF for 2025–26?

• No – Leave labels U1, U2, U3 and U blank. Go to label W.
  Write the non-complying SMSF's non-arm's length income where appropriate at labels A to T.
  Then go to label W.
• Yes – Read on.

Consider whether any income that the SMSF derives in 2025–26 was through a transaction that wasn't at arm's length.

For more information about identifying the SMSF's non-arm's length income, see Non-arm's length income.

Don't include at labels U1, U2, U3, U or any other label in Section B – non-arm’s length income as a result of non-arm’s length expenses that have a sufficient nexus to all ordinary or statutory income of the fund (general expenses) rather than a particular asset or assets of the fund. These general expenses result in non-arm’s length income calculated using the ‘Twice the difference approach’ and will be taken into account when calculating label T1 Tax on taxable income in Section D using the 'Lesser of' calculation – refer to label T1 in Section D. Non-arm's length income isn't exempt from income tax under the exempt current pension income rules.

Net non-arm's length income

Each amount of non-arm’s length income is reduced by any deductions attributable, either in whole or in part, to that income.

Deductions against that income are those that relate exclusively to the non-arm's length income and as much of other deductions that are attributable to that income. The amounts deducted against the SMSF’s non-arm’s length income at labels U1, U2 or U3 shouldn't be included at any label in Section C. However, where non-arm’s length general expenses which give rise to the 'Twice the difference approach' are actually incurred, then to the extent that they are deductible, include the expense at the appropriate label in Section C – Deductions and non-deductible expenses.

Non-arm's length losses

If the net amount of non-arm's length income is a loss, don't show the loss at label U. The loss may be offset against future non-arm's length income. Keep a record of the loss amount with the SMSF's tax records.

Net non-arm’s length private company dividends

Was the SMSF paid non-arm’s length private company dividends?

• No – Leave label U1 blank. Go to label U2.
• Yes – Read on.

Write at label U1 the total of:

• non-arm’s length private company dividends which were paid to the complying SMSF in 2025–26
• franking credits attached to the non-arm's length private company dividends if the SMSF is entitled to a corresponding franking credits tax offset (see Entitlement to franking credits tax offset)
• subtract deductible expenses attributable to the non-arm's length private company dividends.

If you are unsure whether some or all of the SMSF's income is non-arm's length, see Non-arm's length income.

Include non-share dividends that are non-arm's length income at label U1.

Don't include private company dividends that are arm's length income (include these at Section B, item 11 – labels A to T as appropriate).

In addition to including a franking credit at label U1, you must also include it at either Section D, item 13 – labels:

• E1 Complying fund’s franking credits tax offset if the SMSF is a complying fund
• C2 Rebates and tax offsets if the SMSF is a non-complying fund.

Non-arm's length private company dividends aren't exempt from income tax under the exempt current pension income rules.

Net non-arm's length trust distributions

Did the SMSF receive a share of net income from a trust that's non-arm's length income?

• No – Leave label U2 blank. Go to label U3.
• Yes – Read on.

Write at label U2 the total of:

• any non-arm's length income which the complying SMSF received in 2025–26 as a share of net income from a trust
• subtract deductible expenses attributable to the amount at label U2.

If you are unsure whether a share of net income from a trust is non-arm's length, see Non-arm's length income.

Include the following types of income at label U2 if the income is non-arm's length income and received as a share of net income from a trust:

• net capital gains
• dividends (or non-share dividends), along with any attached franking credits if the SMSF is entitled to a corresponding tax offset (see Entitlement to franking credits tax offset).

In addition to including a franking credit at label U2, you must also include it at either Section D, item 13 – labels:

• E1 Complying fund’s franking credits tax offset if the SMSF is a complying fund
• C2 Rebates and tax offsets if the SMSF is a non-complying fund.

Don't include a share of net income from a trust that's arm's length income (include this at Section B, item 11 – label M Gross trust distributions).

A share of net income from a trust that's non-arm's length isn't exempt from income tax under the exempt current pension income rules.

If you report a trust distribution that's non-arm's length at item 11 – label U2, a completed Trust income schedule 2026 needs to be attached to the SMSF annual return.

Net other non-arm's length income

Does the SMSF have any other non-arm’s length income?

• No – Leave label U3 blank. Go to label U.
• Yes – Read on.

Write at label U3 any non-arm's length income which the complying SMSF has for 2025–26 and that wasn't included at labels U1 or U2. If you are unsure whether the income is non-arm's length, see Non-arm's length income.

Don't include at label U3:

• non-arm's length income that's more appropriately included at labels U1 Net non-arm's length private company dividends or U2 Net non-arm's length trust distributions
• non-arm’s length income as a result of a non-arm's length general expense. Non-arm’s length income as a result of a non-arm's length general expense is calculated using the 'Twice the difference approach' (being twice the difference between the amount that might have been expected to be incurred if the parties had been dealing at arm’s length and the amount actually incurred (including a nil amount)) – this non-arm's length income will be taken into account when calculating the ‘Tax on taxable income’ at label T1 in Section D
• income that's arm's length income (write it at Section D, item 13 – labels A to T as appropriate).

Non-arm's length income isn't exempt from income tax under the exempt current pension income rules.

Net non-arm's length income

Add the amounts you wrote at labels U1, U2 and U3.

Note: Due to retrospective law changes for non-arm’s length general expenses, label U may not align with the descriptor on the tax return being ‘subject to 45% tax rate’.

When you work out Section D, item 13 – label T1 Tax on taxable income, a tax rate of 45% is applied to the income you write at label U.

Gross income

Add the amounts from Section B, item 11 – labels A to U, including D and R.

Don't include the following label amounts because they make up the amounts at labels D, R and U:

• D1 Gross foreign income
• R1 Assessable employer contributions
• R2 Assessable personal contributions
• R3 No-TFN-quoted contributions
• R6 Transfer of liability to life insurance company or PST
• U1 Net non-arm's length private company dividends
• U2 Net non-arm's length trust distributions
• U3 Net other non-arm's length income.

Write the total at label W. If the SMSF has no gross income, write 0 (zero) at label W. If the amount at label W is a loss, print L in the Loss box at the right of the amount.

Exempt current pension income

Did the SMSF pay retirement phase super income stream benefits to a member in 2025–26?

• No – Leave label Y blank. Go to label V.
• Yes – Read on.

If the SMSF paid retirement phase super income stream benefits to one or more members during 2025–26, some, or all, of its ordinary income and statutory income may be exempt from income tax under the exempt current pension income rules. This exempt income is called 'exempt current pension income' or ECPI.

Don't reduce the exempt income at label Y by the amount of expenses incurred in gaining or producing that exempt income.

Expenses incurred in gaining or producing exempt income aren't generally deductible. Those expenses must be shown as non-deductible expenses in Section C.

The amount that you write at label Y must be the same as the amount at Section A, item 10 – label A Exempt current pension income amount.

To work out your SMSF's ECPI, see Methods for calculating exempt current pension income.

For more information, see Subdivision 295-F of the ITAA 1997.

If your SMSF has PAYG instalments

If you use the instalment rate method to calculate your SMSF's PAYG instalments, you must exclude the SMSF's exempt current pension income from the amount you write at label T1 PAYG instalment income on the PAYG activity statement. See PAYG instalments.

Total assessable income

Work out the SMSF's total assessable income or loss for 2025–26: subtract Y Exempt current pension income from W Gross income.

Write the answer at label V. If the SMSF has no total assessable income, write 0 (zero) at label V. If the amount at label V is a loss, print L in the Loss box at the right of the amount.

Continue to: Section C: Deductions and non-deductible expenses – item 12

Return to: Instructions to complete your SMSF annual return 2026

What to include at Section C

Provide details of all expenses the SMSF incurred in 2025–26 at the appropriate questions.

Don't show cents for any amount you write in this section.

In the column headed Deductions, at the appropriate labels A1 to M1, list all expenses and allowances for which the SMSF can claim a deduction. For more information, see SMSF deductibility of expenses.

In the column headed Non-deductible expenses, at the appropriate labels A2 to L2 list all other expenses. The SMSF can't claim a deduction for these expenses. They include:

• income tax paid (include it at label L2)
• most expenses incurred in gaining or producing exempt current pension income
• losses or outgoings that the SMSF incurred in deriving an amount that's excluded from assessable income because family trust distribution tax (FTDT) has been paid.

Don't include super benefits paid at any question in Section C.

Generally, SMSFs that derive exempt current pension income can't claim a deduction for expenses to the extent they are incurred in gaining or producing that exempt income. Such expenditure must be apportioned.

However, some expenditure is deductible and doesn't have to be apportioned even though the SMSF has exempt current pension income.

For more information, see:

• Methods for calculating exempt current pension income Taxation Ruling TR 2006/7 Income tax: special income derived by a complying superannuation fund, a complying approved deposit fund or a pooled superannuation trust in relation to the year of income.

Expenses that relate to non-arm's length income

Expenses incurred in deriving non-arm's length income:

• aren't included anywhere in Section C to the extent the non-arm's length expenses are deductible; such expenses reduce the amount you write at the non-arm's length income labels U1, U2 and U3 in Section B, except, if non-arm’s length general expenses are actually incurred, they are included as a deduction at the appropriate label in Section C – Deductions and non-deductible expenses, to the extent that they are deductible
• are included in Section C labels (labels A2 to L2 as appropriate) to the extent the expenses are non-deductible.

For more information, see:

• Taxation Ruling TR 2006/7 Income tax: special income derived by a complying superannuation fund, a complying approved deposit fund or a pooled superannuation trust in relation to the year of income
• Law Companion Ruling LCR 2021/2 Non-arm's length income – expenditure incurred under a non-arm's length arrangement.

Expenses that relate to foreign income

Expenses incurred in deriving foreign income:

• aren't included anywhere in Section C to the extent the expenses are deductible; such expenses reduce the amount you write at Section B, item 11 – label D Net foreign income
• are included in Section C (labels A2 to L2 as appropriate) to the extent the expenses are non-deductible.

Taxation of financial arrangements (TOFA)

If the TOFA rules apply to the SMSF, include expenses from financial arrangements subject to the TOFA rules at the appropriate question. Complete Section I Taxation of financial arrangements if you include an amount determined under the TOFA rules.

For more information, see Section I: Taxation of financial arrangements.

12 Deductions and non-deductible expenses

In this section, complete the labels as required.

Interest expenses within Australia

Did the SMSF incur interest expenses on money borrowed from an Australian source?

• No – Leave labels A1 and A2 blank. Go to labels B1 and B2.
• Yes – Read on.

Write at labels A1 and A2 the amount of interest that the SMSF incurred in 2025–26 on money borrowed from an Australian source.

Deductible interest expenses within Australia

Write at label A1 the amount of deductible interest expenses incurred on borrowings from sources within Australia.

Borrowing money for your SMSF is allowed in limited circumstances. If you have borrowed money within an allowed circumstance, interest expenses incurred on those borrowings are deductible to the extent of their connection to earning assessable income. For example, if the borrowed money is used to acquire assets for the purpose of earning assessable income.

Don't include at label A1 interest expenses (or any part of such expenses) that relate to earning:

• foreign income (see Expenses that relate to foreign income)
• non-arm's length income (see Expenses that relate to non-arm's length income).

If the SMSF paid retirement phase income stream benefits to a member, refer to Exempt current pension income before you claim a deduction for the SMSF's interest expenses incurred on borrowings from Australian sources.

Non-deductible interest expenses within Australia

Write at label A2 the amount of interest expenses that the SMSF incurred on borrowings from Australian sources that isn't deductible. This includes an amount of interest expense to the extent it is incurred for the purposes of earning exempt income.

Interest expenses overseas

Did the SMSF incur interest expenses on money borrowed from an overseas source?

• No – Leave labels B1 and B2 blank. Go to labels D1 and D2.
• Yes – Read on.

Write at labels B1 and B2 the amount of interest that the SMSF incurred in 2025–26 on money borrowed from an overseas source.

Deductible interest expenses overseas

Write at label B1 the amount of deductible interest expenses incurred on borrowings from overseas sources.

Borrowing money for your SMSF is allowed in limited circumstances. If you have borrowed money within an allowed circumstance, interest expenses incurred on those borrowings from overseas sources are deductible to the extent of their connection to earning assessable income. For example, if the borrowed money is used to acquire assets for the purpose of earning assessable income.

Don't include at label B1 interest expenses (or any part of such expenses) that relate to earning:

• foreign income (see Expenses that relate to foreign income)
• non-arm's length income (see Expenses that relate to non-arm's length income).

If the SMSF paid retirement phase income stream benefits to a member, refer to Methods for calculating exempt current pension income before you claim a deduction for the SMSF's interest expenses overseas.

Non-deductible interest expenses overseas

Write at label B2 the amount of interest expenses that the SMSF incurred on borrowings from overseas sources that isn't deductible. This includes an amount of interest expense to the extent the expense is incurred for the purposes of gaining or producing exempt income.

PAYG withholding

SMSFs must remit to us the amount of tax (withholding tax) they have withheld, or should have withheld, from interest paid or payable to either:

• non-residents
• residents, where the resident's interest is derived through an overseas branch.

If the SMSF is required to have withheld an amount from interest paid, or is required to withhold from interest payable, the SMSF must register for PAYG withholding and lodge a PAYG withholding from interest, dividend and royalty payments paid to non-residents – annual report.

If the SMSF paid interest to non-residents, keep a record of the following:

• name and address of recipients
• amount of interest paid or credited
• amount of tax withheld
• the date that the tax withheld was remitted to us.

For more information, see Record-keeping requirements.

Capital works expenditure

Capital works include the construction, extension, alteration and improvement of any capital asset (such as buildings, dams and roads) and structural improvements such as fences, retaining walls and sealed driveways.

Does the SMSF have deductible or non-deductible capital works expenditure?

• No – Leave labels D1 and D2 blank. Go to labels E1 and E2.
• Yes – Read on.

Write at labels D1 and D2, as required, the amount that the SMSF calculated in 2025–26 for capital works expenditure.

Don't include at labels D1 or D2 capital works expenditure that you can include at another question in Section C.

Deductible capital works expenditure

Write at label D1 the amount of deductible capital works expenditure. For more information about amounts that are deductible, see Appendix 2: Capital works expenditure.

Don't include at label D1 capital works expenditure (or any part of such expenditure) that relates to gaining or producing:

• foreign income (see Expenses that relate to foreign income)
• non-arm's length income (see Expenses that relate to non-arm's length income).

If the SMSF paid retirement phase income stream benefits to a member, refer to Methods for calculating exempt current pension income before you claim a deduction for capital works expenditure.

Non-deductible capital works expenditure

Write at label D2 the amount of capital works expenditure that isn't deductible. For example, if the SMSF uses the capital works area for the purposes of gaining or producing exempt income, such as exempt current pension income.

 

Decline in value of depreciating assets

A depreciating asset is an asset that has an effective life and can reasonably be expected to decline in value over the time it is used. This decline in value may be a deduction or a non-deductible expense.

Did the SMSF's depreciating assets decline in value?

• No – Leave labels E1 and E2 blank. Go to labels F1 and F2.
• Yes – Read on.

Write at labels E1 and E2 the amount by which the SMSF's depreciating asset declined in value during 2025–26.

If you are uncertain whether an asset is a depreciating asset or whether you can claim a deduction, see Guide to depreciating assets 2026.

Deductible decline in value of depreciating assets

Write at label E1 the deductible amount for the decline in value of the SMSF's depreciating assets, for example, the decline in value of a depreciating asset that the SMSF uses for the purposes of gaining or producing assessable income.

Don't include at label E1 an amount for the decline in value of an asset to the extent the amount is taken into account in working out:

• foreign income (see Expenses that relate to foreign income)
• non-arm's length income (see Expenses that relate to non-arm's length income).

If the SMSF pays retirement phase income stream benefits to a member, refer to Methods for calculating exempt current pension income before you claim a deduction for the amount the SMSF's depreciating assets declined in value.

For more information, see Guide to depreciating assets 2026.

You can work out your capital allowance deductions by using the Depreciation and capital allowances tool.

From 1 July 2017, you are generally not entitled to a deduction for decline in value of certain second-hand depreciating assets in your existing residential property:

• which you entered into a contract to acquire, or which you otherwise acquired, at or after 7:30 pm (AEST) on 9 May 2017
• which you used, or had installed ready for use, for any private purpose in 2016–17 or earlier, and for which you weren't entitled to a deduction for a decline in value in 2016–17.

You may be entitled to these deductions if you are using your residential rental property in carrying on a business (including the business of property investing) or another exception applies.

Residential rental properties are residential premises you use to provide residential accommodation for the purpose of gaining or producing assessable income.

For more information, see:

• Rental properties 2026
• Guide to depreciating assets 2026.

Non-deductible decline in value of depreciating assets

Write at label E2 the amount for the decline in value of the SMSF's depreciating assets that isn't deductible. This includes an amount for the decline in value of a depreciating asset to the extent the asset is used for the purposes of gaining or producing exempt income, such as exempt current pension income.

 

Insurance premiums – members

Did the SMSF have insurance to cover its members?

• No – Leave labels F1 and F2 blank. Go to label H1.
• Yes – Read on.

Write at labels F1 and F2, as required, the amount of insurance premiums incurred by the SMSF for 2025–26 for insurance policies that provide cover to enable benefits to be paid for members.

Deductible insurance premiums – members

Write at label F1 the amount that's deductible for insurance premiums to provide benefits upon the death, existence of a terminal medical condition, or temporary or permanent disability of a member:

If in 2025–26 the SMSF purchased or provided any of the following types of insurance, read on to find out what amount the SMSF can deduct:

• Whole of life policies
• Endowment policies
• Total and permanent disability (TPD) cover
• Temporary disability
• Self-insurance.

A complying SMSF may instead choose to deduct an amount calculated using the formula in Section 295-470 of the Income Tax Assessment Act 1997 (ITAA 1997) rather than claiming a deduction for insurance premiums paid, or an amount under the self-insurance provisions.

If the SMSF has exempt current pension income this doesn't affect the amount the SMSF is entitled to deduct for insurance premiums. For more information, see Methods for calculating exempt current pension income.

Since 1 July 2014, an SMSF trustee can no longer enter into insurance policies to provide benefits that aren't consistent with the conditions of release in the Superannuation Industry (Supervision) Regulations 1994 (SISR) for death, terminal medical condition, permanent incapacity and temporary incapacity.

However, this doesn't apply to the continued provision of insured benefits to members who joined the SMSF, and were covered by that insured benefit, before 1 July 2014 or to the provision of benefits under an approval that has been granted. For more information see regulation 4.07D of the SISRExternal Link.

Non-deductible insurance premiums – members

Write at label F2, the amount that isn't deductible for insurance premiums.

Non-deductible insurance premiums include:

• any insurance premiums paid by a non-complying SMSF
• payments for insurance that covers events other than death, the existence of a terminal medical condition, or temporary or permanent disability (for example, funeral insurance).

For more information, see Subdivision 295-G of the ITAA 1997.

Whole of life policies

A complying SMSF can deduct 30% of the premium for a whole of life policy if all the individuals whose lives are insured are members of the SMSF. For more information on what a 'whole of life policy' is for these purposes, see Section 295-480 of the ITAA 1997 and ATO ID 2009/100.

If the whole of life policy is bundled with other types of insurance, the SMSF can deduct 30% of the part of the insurance premium that's specified in the policy as being for a distinct part of the policy that would have been a whole of life policy if it had been a separate policy and all of the individuals whose lives are insured are members of the SMSF.

Endowment policies

A complying SMSF can deduct 10% of a premium for an endowment policy if all the individuals whose lives are insured are members of the SMSF. For more information on what an 'endowment policy' is for these purposes, see Section 295-480 of the ITAA 1997.

If the endowment policy is bundled with other types of insurance, the SMSF can deduct 10% of the part of the insurance premium that's specified in the policy as being for a distinct part of the policy that would have been an endowment policy if it had been a separate policy and all of the individuals whose lives are insured are members of the SMSF.

Total and permanent disability (TPD) cover

There are proportions of insurance premiums for TPD cover that are deductible. Section 295-460 of the ITAA 1997 outlines the benefits for which deductions are available under item 6 of the table in subsection 295-465(1) of the ITAA 1997.

TPD any occupation

'TPD any occupation' means insurance against the member suffering an illness or injury that's likely to result in the member’s permanent inability to work in any job for which the member is reasonably qualified by education, training or experience.

A complying SMSF can deduct 100% of insurance premiums for 'TPD any occupation' cover for its members as shown in Table 6.

TPD own occupation

'TPD own occupation' means insurance against the member suffering an illness or injury that's likely to result in the member’s permanent inability to work in the member’s own occupation (other than in a substantially reduced capacity).

A complying SMSF can deduct a portion of insurance premiums for 'TPD own occupation' cover for its members, as shown in Table 6.

Actuary certificate

An actuary certificate isn't required to be obtained in order to deduct either:

• the premium, or a proportion of the premium, as shown in Table 6
• a percentage of a part of a bundled insurance premium that's specified as being for a policy that would have been deductible if it had been a separate policy.

An actuary certificate is required to be obtained in order to deduct either:

• a proportion other than that specified in Table 6
• an amount for a bundled insurance premium where no amount has been specified for insurance to provide superannuation benefits upon the death, existence of a terminal medical condition or disability of a member.

If an actuarial certificate is required it must be obtained before the date of lodgment of the annual return.

Table 6 shows the proportions of insurance premiums for TPD cover that are deductible under item 6 of the table in subsection 295-465(1) of the ITAA 1997 as specified in subsection 295-465.01 of the Income Tax Assessment (1997 Act) Regulations 2021.

For information about deductions for premiums for total and permanent disability cover, see Taxation Ruling TR 2012/6 Income tax: deductibility under subsection 295-465(1) of the Income Tax Assessment Act 1997 of premiums paid by a complying superannuation fund for an insurance policy providing Total and Permanent Disability cover in respect of its members.

Table 6: Proportions of insurance premiums for TPD cover that are deductible

The SMSF can deduct:	Percentage
TPD any occupation cover.	100%
TPD any occupation cover with one or more of the following inclusions: activities of daily living cognitive loss loss of limb domestic (home) duties.	100%
TPD own occupation cover.	67%
TPD own occupation cover with one or more of the following inclusions: activities of daily living cognitive loss loss of limb domestic (home) duties.	67%
TPD own occupation cover bundled with death (life) cover.	80%
TPD own occupation cover bundled with death (life) cover with one or more of the following inclusions: activities of daily living cognitive loss loss of limb domestic (home) duties.	80%

Temporary disability

A complying SMSF may also deduct premiums on insurance policies to replace members' income during periods of their temporary disability.

Self-insurance

An SMSF can't enter into any arrangement to provide self-insurance for a member. Even where the SMSF was providing self-insurance for a member on or before 1 July 2013, the arrangement must have ended before 1 July 2016. For more information see Superannuation Industry (Supervision) Regulations 1994External Link.

SMSF auditor fee

Did the SMSF incur auditor's fees?

• No – Write 0 (zero) at label H1. Go to labels I1 and I2.
• Yes – Read on.

Write at labels H1 and H2, as required, the amount of auditor fees that the SMSF incurred in 2025–26.

Don't include tax agent fees or other management and administration expenses that are not actually paid to the SMSF auditor or their firm at labels H1 or H2. Fees for management and administration activities relating to the audit that are not paid to the SMSF auditor or their firm must be included at labels J1 or J2 Management and administration expenses.

Deductible SMSF auditor fee

Write at label H1 the amount of SMSF auditor fees that are deductible.

If the SMSF didn't incur deductible SMSF auditor fees, write 0 (zero) at label H1.

Don't include at label H1 any part of the SMSF's auditor fees that relate to earning:

• foreign income (see Expenses that relate to foreign income)
• non-arm's length income (see Expenses that relate to non-arm's length income).

If the SMSF pays retirement phase superannuation income stream benefits to a member, refer to Methods for calculating exempt current pension income before you claim a deduction for the SMSF's auditor fees.

Non-deductible SMSF auditor fee

Write at label H2 the amount for auditor fees that isn't deductible. This includes auditor fees to the extent the fees are incurred for the purposes of gaining or producing exempt income, such as exempt current pension income.

If the SMSF didn't incur non-deductible SMSF auditor fees, write 0 (zero) at label H2.

 

Investment expenses

Did the SMSF incur expenses of a revenue nature in managing or maintaining its investments?

• No – Leave labels I1 and I2 blank. Go to labels J1 and J2.
• Yes – Read on.

Write at labels I1 and I2, as required, the amount of expenses (of a revenue nature) that the SMSF incurred in managing or maintaining its investments.

Deductible investment expenses

Write at label I1 the deductible amount of investment expenses.

The exact nature of the investment related expenses is critical in determining deductibility. Examples of deductible investment related expenses include:

• interest expenses
• ongoing management fees or retainers paid to investment advisers
• costs of servicing and managing an investment portfolio such as bank fees, rental property expenses, brokerage fees
• the cost of advice to change the mix of investments, whether by the original or a new investment adviser, provided it doesn't amount to a new financial plan.

Note: if the advice covers other matters or relates in part to investments that don't produce assessable income, only a proportion of the fee is deductible.

For more information, see Investment-related expenses.

Don't include at label I1 investment expenses (or any part of such expenses) that relate to earning:

• foreign income (see Expenses that relate to foreign income)
• non-arm's length income (see Expenses that relate to non-arm's length income).

There are special rules for the deductibility of expenses relating to investments in PSTs and life insurance policies, see Investments in pooled superannuation trusts (PSTs) and life insurance policies.

If the SMSF pays retirement phase superannuation income stream benefits to a member, refer to Methods for calculating exempt current pension income before you claim a deduction for the SMSF's investment expenses.

Non-deductible investment expenses

Write at label I2 the amount of investment expenses that aren't deductible. This includes an amount of investment expense to the extent the expense is incurred for the purposes of gaining or producing exempt income, such as ECPI.

 

Investments in PSTs and life insurance policies

Complying SMSFs claim deductions for expenses they incurred to acquire, hold or dispose of:

• units in a PST
• life insurance policies issued by life insurance companies
• interests in trusts whose assets consist wholly of such life insurance policies.

The SMSF claims the expenditure as a deduction if the expenditure would qualify for deduction under the provisions of the Income Tax Assessment Act 1936 (ITAA 1936) or the ITAA 1997 if any profits, gains or bonuses received from the investments listed above that aren't assessable income were instead included in assessable income.

Don't include amounts at labels I1 or I2 if you can more appropriately include them at labels F1 or F2.

The SMSF can't deduct amounts for investment charges that the PST or life insurance company deducts from the gross contributions transferred to it from the SMSF. These charges aren't deductible because they are capital expenditure (since they reduce the amount of the investment).

For more information, see Section 295-100 of the ITAA 1997.

Management and administration expenses

Did the SMSF incur management or administration expenses?

• No – Leave labels J1 and J2 blank. Go to labels U1 and U2.
• Yes – Read on.

Write at labels J1 and J2, as required, the amount of management and administration expenses (of a revenue nature) that the SMSF incurred in 2025–26.

Don't include at labels J1 or J2:

• investment management expenses (include these at labels I1 or I2 Investment expenses)
• SMSF auditor fees (include these at labels H1 or H2 SMSF auditor fees).

Deductible management and administration expenses

Write at label J1 the amount of deductible management and administration expenses.

The SMSF claims a deduction for management and administration expenses incurred:

• for the purposes of gaining and producing assessable income  
  • such as the cost of collecting contributions (Australian SMSFs can claim a deduction whether or not the contribution is assessable, foreign SMSFs can't claim a deduction)
• that were tax-related (as described in Section 25-5 of the ITAA 1997), such as  
  • tax agent fees
  • SMSF supervisory levy

Don't include at label J1 management and administration expenses (or any part of such expenses) that relate to earning:

• foreign income (see Expenses that relate to foreign income)
• non-arm's length income (see Expenses that relate to non-arm's length income).

If the SMSF pays retirement phase superannuation income stream benefits to a member, refer to Methods for calculating exempt current pension income before you claim a deduction for the SMSF's management and administration expenses.

Non-deductible management and administration expenses

Write at label J2 the amount of management and administration expenses that aren't deductible.

Non-deductible management and administration expenses include:

• fees for setting up the SMSF
• legal fees incurred to amend a trust deed to include a new member
• late lodgment penalties
• most expenses incurred in gaining or producing income that's exempt, such as ECPI.

For more information, see Taxation Determination TD 2024/6 Income tax: trustee risk reserves - deductibility of payments made by a superannuation fund to its trustee

Forestry managed investment scheme expense

Did the SMSF incur expenses for a forestry managed investment scheme (FMIS)?

• No – Leave labels U1 and U2 blank. Go to labels L1 and L2.
• Yes – Read on.

Write at labels U1 and U2, as required, the amount of forestry managed investment scheme expenses that the SMSF incurred in 2025–26.

Deductible forestry managed investment scheme expenses

Write at label U1 the total amount of deductible payments made under an FMIS.

Don't include at label U1 payments (or any part of such payments) that relate to earning:

• foreign income (see Expenses that relate to foreign income)
• non-arm's length income (see Expenses that relate to non-arm's length income).

You can read more about calculating deductible FMIS payments at Appendix 3: Forestry managed investment schemes.

If the SMSF pays retirement phase superannuation income stream benefits to a member, refer to Methods for calculating exempt current pension income before you claim a deduction for the SMSF's FMIS expenses.

Non-deductible forestry managed investment scheme expenses

Write at label U2 the total amount of payments made under an FMIS that aren't deductible. The SMSF can't claim a deduction for certain excluded payments. For more information, see Appendix 3: Forestry managed investment schemes.

The SMSF can't claim a deduction for payments if the income from the FMIS is exempt income, such as ECPI.

For information on the SMSF's eligibility to claim deductions, if the SMSF incurred expenses to do with a collapsed agribusiness managed investment scheme, then see Collapse and restructure of agribusiness managed investment schemes – participant information.

 

Other amounts

Did the SMSF incur other expenses?

• No – Leave labels L1 and L2 blank. Go to label M1.
• Yes – Read on.

Write at labels L1 and L2, as required the amount of expenses incurred by the SMSF in 2025–26 that don't fall into any other category in Section C. You will need to refer to:

• Table 7: 'Other amounts' categories and codes which specifically identifies, and provides codes for, 9 categories of other amounts, and
• the description of each category below Table 7.

Don't include at labels L1 or L2:

• expenses that are more appropriately included elsewhere in Section C
• super benefits paid (don't include these anywhere in Section C).

Deductible other amounts

Write at label L1 the total of any other deductible expenses that aren't included at any other question.

Don't include at label L1 expenses (or any part of expenses) that relate to earning:

• foreign income (see Expenses that relate to foreign income)
• non-arm's length income (see Expenses that relate to non-arm's length income) – except any amount of non-arm’s length general expense actually incurred that gave rise to the 'Twice the difference approach', that doesn't fall in any other label in Section C and to the extent that it is deductible.

If the SMSF pays retirement phase superannuation income stream benefits to a member, refer to Methods for calculating exempt current pension income before you claim a deduction for the expenses that you include at label L1.

Non-deductible other amounts

Write at label L2 the total of any other expenses that the SMSF incurred that aren't deductible and that aren't included at any other question. For example, include income tax paid by the SMSF at label L2 as it isn't deductible at all.

Also include an amount for any other expenses (that aren't included at any other question) to the extent those expenses are incurred for the purposes of earning exempt income, such as ECPI.

Code – deductible and non-deductible other amounts

You must print a code in the code box to the right of:

• label L1 if you write an amount at label L1
• label L2 if you write an amount at label L2.

Print the code from Table 7 that best describes the largest amount you include at each of labels L1 and L2.

Table 7: 'Other amounts' categories and codes

Code	Amounts in respect of
A	Balancing adjustment amounts
B	Contribution that's a fringe benefit
C	Exclusion of personal contributions
E	Environmental protection activities (EPA) expenditure
F	Forex losses
I	Deduction relating to listed investment company (LIC) capital gain amount
N	Deduction relating to foreign non-assessable non-exempt income
R	Return of contributions by a non-complying SMSF
T	Taxation of financial arrangements (TOFA) amounts
O	Other amounts not listed above

Balancing adjustment amounts – code A

If the SMSF stops holding or using a depreciating asset, you need to work out a balancing adjustment amount. Include balancing adjustment losses at labels L1 or L2.

For more information, see Guide to depreciating assets 2026.

Contribution that's a fringe benefit – code B

A 'contribution that's a fringe benefit' is a contribution that's both:

• included in the SMSF's assessable income as an assessable contribution that's a fringe benefit
• taxed as a fringe benefit in the hands of the contributor.

The SMSF can deduct a contribution that's a fringe benefit in the income year in which the contribution is included in assessable income. The deduction is included at label L1.

A contribution made for an employee to a complying SMSF isn't a fringe benefit.

For more information, see Section 295-490 of the ITAA 1997.

Exclusion of personal contributions – code C

'Exclusion of personal contributions' refers to situations where an SMSF:

• received (from a member) during 2025–26 a valid variation of the Notice of intent to claim a deduction for personal super contributions (the variation notice) that reduced the amount of personal contributions that were assessable income of the SMSF and the variation notice was received after the SMSF has lodged its annual return for the income year that included the contribution as assessable income, and
• didn't choose to amend the SMSF annual return for income year in which it included the contributions as assessable income.

In this situation the SMSF may claim a deduction in the income year the variation notice was received by including an amount at label L1 for 'exclusion of personal contributions'. The SMSF's assessable income for 2025–26 is reduced by the amount its assessable income in a previous income year is overstated, following a valid variation notice being received from the member.

Don't include an amount at label L1 for 'exclusion of personal contributions' if a member varies a Notice of intent to claim a deduction for personal super contributions for personal super contributions made by the member in 2025–26 (include the reduced amount at R2 Assessable personal contributions).

For more information, see Notice of intent to claim or vary a deduction for personal super contributions.

Environmental protection activities (EPA) expenditure – code E

A deduction is allowed for certain capital expenditure incurred for the sole or dominant purpose of either:

• preventing, fighting or remedying pollution of the environment resulting from an earning activity, the site of an earning activity, or the site where an entity was carrying on any business that you have acquired and carried on substantially unchanged as your earning activity
• treating, cleaning up, removing or storing waste resulting from an earning activity, the site of an earning activity, or the site where an entity was carrying on any business that you have acquired and carried on substantially unchanged as your earning activity.

Include at label L1 a deduction for EPA expenditure.

Expenditure that forms part of the cost of a depreciating asset isn't deductible as expenditure on EPA if a deduction is available for the decline in value of the asset.

You can write off expenditure incurred on or after 19 August 1992 on certain earthworks constructed as a result of carrying out EPA at the rate of 2.5% per annum under the provisions for capital works expenditure (see, subsection 43-20(5) of the ITAA 1997).

For more information, see:

• Guide to depreciating assets 2026 
• Section 40-755 of the ITAA 1997.

Forex losses – code F

If the SMSF has any deductible or non-deductible foreign exchange losses of a revenue nature that haven't been shown at any other question in Section C, include the amount of the losses at labels L1 or L2.

See Foreign exchange gains and losses to work out the SMSF's forex losses, if any.

Deduction relating to LIC capital gain amount – code I

A listed investment company (LIC) can pay a dividend to an SMSF that includes a LIC capital gain amount (shown in the LIC’s dividend statement). A complying SMSF can claim a deduction of one-third of that LIC capital gain amount. An Australian resident non-complying SMSF that's a trust can claim a deduction of one-half of that LIC capital gain amount.

Include at label L1 allowable deductions for a LIC capital gain amount.

For more information, see Subdivision 115-D of the ITAA 1997.

Deduction for foreign non-assessable non-exempt income – code N

Certain expenses relating to foreign non-assessable non-exempt income (that is, tax-free income) are allowable deductions against the SMSF’s assessable income if the expenses incurred are a cost in relation to certain debt interests.

Include at label L1 a deduction for such expenses.

For SMSFs, the relevant non-assessable non-exempt income is foreign income covered by sections 23AI or 23AK of the ITAA 1936.

For more information, see:

• Section 25-90 of the ITAA 1997
• Sections 23AI or 23AK of the ITAA 1936 if the amount is attributed income.

Return of contributions by non-complying SMSF – code R

An SMSF that has been non-complying since 1 July 1988, or since it was established if this is later, can deduct at label L1 an amount which it pays to an entity (the receiving entity), so far as the amount reasonably represents the direct or indirect return of either:

• a contribution for which the receiving entity or another entity has deducted or can deduct an amount
• earnings on such a contribution.

The receiving entity includes the amount in its assessable income under Section 290-100 of the ITAA 1997.

The amount can be deducted by the SMSF in the income year in which it is included in the receiving entity's assessable income.

For more information, see Section 295-490 of the ITAA 1997.

Taxation of financial arrangements (TOFA) amounts – code T

If the TOFA rules apply to calculate an assessable gain or deductible loss on the SMSF’s financial arrangements, include at label L1 any deductible losses relating to financial arrangements. Write at label L2 any TOFA losses for which a deduction couldn't be claimed. TOFA amounts that have been included elsewhere shouldn't be included here.

Complete Section I: Taxation of financial arrangements if what you write at labels L1 or L2 includes an amount determined under the TOFA rules.

Other amounts not listed above – code O

If the amount that you include at labels L1 or L2 isn't one of the types of deduction listed above for codes A, B, C, E, F, I, N, R or T, then use code O for 'other'.

Tax losses deducted

Does the SMSF have a tax loss from an earlier income year?

• No – Leave label M1 blank. Go to label N.
• Yes – Read on.

Write at label M1 the tax losses from an earlier income year that the SMSF is claiming. The SMSF can claim tax losses only to the extent that its total assessable income exceeds total deductions (other than tax losses).

The trust loss legislation in Schedule 2F to the ITAA 1936 affects the deductibility of prior year losses by all trusts that aren't excepted trusts as defined in Section 272-100 of the ITAA 1936, such as non-complying super funds.

You may need to complete and attach a Losses schedule 2026 to the SMSF's annual return. For more information, see Losses schedule 2026 instructions.

Tax losses aren't the same as ‘capital losses’ which may result from a capital gains tax event. Don't include net capital losses at label M1. Capital losses from prior years can be applied against the current year's capital gains at Section B, item 11 – label A Net capital gain or carried forward to later income years. See Section E, item 14 – label V Net capital losses carried forward to later income years.

Do include foreign tax losses from prior years at label M1.

Don't include at label M1 tax losses that relate to non-arm's length income. Tax losses that relate to non-arm's length income can only be applied against non-arm's length income. If the SMSF has carried forward a loss from a non-arm's length transaction in a prior year, use the loss to reduce the amount that you write at the non-arm's length income questions in Section B, item 11 – labels U1, U2 and U3.

Tax losses and tax exempt income

If the SMSF had Net exempt income in 2025–26, you must first deduct the SMSF’s tax losses from earlier income years from the SMSF’s net exempt income (Section 36-15 of the ITAA 1997).

If tax losses from earlier years remain after the net exempt income has been reduced to zero, write the remaining tax losses at label M1 to be deducted from the SMSF's assessable income (but only to the extent such losses are necessary to reduce the SMSF's taxable income to zero).

For more information, see Exempt current pension income.

 

Total deductions

Add all the deductions from labels A1 to M1.

Write the total at label N.

Total non-deductible expenses

Add all the non-deductible expenses from labels A2 to L2.

Write the total at label Y.

Taxable income or loss

Subtract the amount at label N Total deductions from the amount in Section B, item 11 – label V Total assessable income. If label V is a loss, add labels N and V.

Write the result at label O. If the result is:

• zero, you must write 0
• a loss  
  • print L in the box at the right of the total
  • include that total at Section E, item 14 – label U Tax losses carried forward to later income years.

Label O is mandatory. If you leave label O blank, you will have specified a zero amount.

Total SMSF expenses

Add the amounts at labels N Total deductions and Y Total non-deductible expenses.

Write the total at label Z.

Continue to: Section D: Income tax calculation statement – item 13

 

 

Mandatory labels

You must complete labels A, T1, J, T5 and I in this section.

This section works out the amount of tax and other charges payable by, or refundable to, the SMSF. We also use the information which you provide in this section to work out the SMSF's 2026–27 PAYG instalments (if applicable to the SMSF).

Work through each label from A Taxable income to S Amount due or refundable and either:

• write the relevant amount if the question applies to your SMSF
• write 0 (zero) if the question  
  • doesn't apply to your SMSF, and
  • is one of the mandatory labels A, T1, J, T5 and I
• leave the answer box blank for any other question that doesn't apply to your SMSF.

Answer the questions in their sequence. Some questions rely on information you have already entered in previous questions.

On pages 6 and 7 you will need to go through the questions in the left-hand column (labels C1–2, D1–4, E1–4, H2–8) before you can complete the 3 questions in the right-hand column (labels C, D, E, H).

Entitlement to franking credits tax offset

Under the imputation system, tax paid by a company can be passed on to its members (shareholders) as a credit (referred to as a franking credit). The member may be able to claim a tax offset for that franking credit (referred to as a franking credits tax offset).

If the SMSF receives dividends with franking credits attached, and none of the exceptions in the following paragraph apply, the SMSF can claim a franking credits tax offset equal to the amount of the franking credit or the SMSF's share of the franking credit.

The SMSF isn't entitled to a franking credits tax offset if:

• the SMSF wasn't an Australian resident
• the SMSF didn't satisfy the holding period rule and the related payments rule for the dividend
• the dividend washing integrity rule applies
• there is some other manipulation of the imputation system
• the franking credits are attached to tax exempt dividends (unless they are exempt from income tax under the exempt current pension income rules)
• the franking credits are attached to dividends that are non-assessable non-exempt income.

If the SMSF is entitled to a franking credits tax offset, include the amount of the franking credit (along with the dividend income) at the appropriate question in Section B and include the franking credit amount at either label:

• E1 Complying fund’s franking credits tax offset if the SMSF is complying
• C2 Rebates and tax offsets if the SMSF is non-complying.

A complying SMSF is entitled to a refund if it is unable to fully utilise the tax offset in reducing its income tax whereas a non-complying SMSF isn't entitled a refund of the unused portion of a tax offset amount.

13 Calculation statement

In this section, complete labels as required.

If you report a distribution from a trust at item 13, a completed Trust income schedule 2026 needs to be attached to the SMSF annual return.

Calculation of gross tax

Section D labels A, T1, J, T5 and I are mandatory. If you leave these labels blank, you will have specified a zero amount.

Taxable income

You wrote the SMSF's taxable income, or its loss, at Section C, item 12 – label O Taxable income or loss.

Is the amount at label O (Taxable income or a loss), a loss?

• No – Transfer the amount from Section C, item 12 – label O Taxable income or loss to label A.
• Yes – Write 0 (zero) at label A. Go to label T1.

Label A is mandatory. If you leave label A blank, you will have specified a zero amount.

Tax on taxable income

Is the amount at label A zero?

• Yes – Write 0 (zero) at label T1. Go to label J.
• No – Read on.

Is the SMSF a complying SMSF for the income year?

If you answer No:

• All assessable income for a non-complying SMSF is taxed at 45%, whether arm's length income, non-arm's length income or arising from a change in the SMSF's tax status.
• Step 1: Multiply label A by 45%.
• Step 2: Write the result at label T1.

If you answer Yes, different tax rates apply to arm's length and non-arm's length income. You must include at label T1 the tax calculated as the sum of:

• 45% of the non-arm's length component calculated as the lesser of (the ‘Lesser of’ calculation)

(a) the sum of

• U Net non-arm's-length income (in Section B), and
• the total non-arm’s length income that arises due to non-arm's length general expenses (if any) where, for each general expense, the amount of the non-arm’s length income is calculated as the difference between the amount of loss, outgoing or expense (revenue or capital in nature) expected to be incurred if the parties had been dealing at arm’s length and the amount of loss, outgoing or expense (revenue or capital in nature) actually incurred (nil if no loss, outgoing or expense was incurred), with the result multiplied by 2 (the ‘Twice the difference approach’ amount). Don't reduce this amount by any deduction, including the amount of non-arm's length general expense actually incurred

and

(b) The total taxable income for the year written at label O in Section C less any assessable contributions you have written at label R in Section B and adding any deductions against those contributions.

• 15% of the arm's length component (label A in Section D less the result of the ‘Lesser of’ calculation above).

The result is the tax on the SMSF's taxable income before applying rebates, tax offsets, and credits. Write the result at label T1, then go to label J.

Label T1 is mandatory. If you leave label T1 blank, you will have specified a zero amount.

Tax on no-TFN-quoted contributions

If the SMSF received no-TFN-quoted contributions (recorded at Section B, item 11 – label R3 No-TFN-quoted contributions), it pays extra tax on those contributions.

Did the SMSF receive contributions from a member who hasn't provided their TFN?

• No – Write 0 (zero) at label J. Go to label B.
• Yes – Read on.

Extra tax applies to no-TFN-quoted contributions. To work out the extra tax, multiply the no-TFN-quoted contributions by:

• 32% if the SMSF is a complying SMSF
• 2% if the SMSF is a non-complying SMSF.

Write the result at label J.

All SMSFs, complying and non-complying, have an overall tax rate of 47% on no-TFN-quoted contributions:

• complying SMSFs pay 15% (at label T1) and 32% (at label J), a total of 47%
• non-complying SMSFs pay 45% (at label T1) and 2% (at label J), a total of 47%.

You must complete label J. If you leave label J blank, you specify a zero amount.

Gross tax

Write at label B the total of label T1 and label J. If the total is zero, write 0 (zero) at label B.

 

Non-refundable non-carry forward tax offsets

Non-refundable non-carry forward tax offsets (if the SMSF is entitled to them) reduce the SMSF's gross tax. If the total of the 'non-refundable non-carry forward' tax offsets is greater than the gross tax, the excess can't be carried forward and is lost. If the SMSF's gross tax is greater than the total of non-refundable non-carry forward tax offsets, the remaining tax is shown at Section D, item 13 – label T2 Subtotal 1.

Foreign income tax offset

Is the SMSF entitled to a foreign income tax offset?

• No – Leave label C1 blank. Go to label C2.
• Yes – Read on.

The SMSF may be able to claim a foreign income tax offset where it has paid foreign income tax on an amount included in its assessable income. The SMSF’s foreign income tax offset is limited to the lesser of:

• the foreign income tax that the SMSF paid (or is taken to have paid)
• the SMSF's foreign income tax offset limit (which is $1,000 or the amount calculated under paragraph 770-75(2)(b) of the ITAA 1997, whichever is greater).

Write at label C1 the amount that the SMSF can claim as a foreign income tax offset.

Don't include Australian franking credits from a New Zealand company at label C1. Include these at either label:

• E1 Complying fund’s franking credits tax offset if the SMSF is complying
• C2 Rebates and tax offsets if the SMSF is non-complying.

For more information, see:

• Guide to foreign income tax offset rules 2026 
• Subdivision 770-B of the Income Tax Assessment Act 1997 (ITAA 1997).

Rebates and tax offsets

Is the SMSF entitled to rebates and tax offsets (other than those that the SMSF claims at labels C1, D1 to D4 or E1 to E3)?

• No – Leave label C2 blank. Go to label C.
• Yes – Read on.

Write at label C2 the total of rebates and tax offsets available other than those that are included at labels C1, D1 to D4 or E1 to E3.

Include franking credits tax offsets at label C2 if the SMSF is non-complying. For details on entitlement to a franking credits tax offset, see Entitlement to franking credits tax offset.

You must also include the franking credit as income at the appropriate question in Section B.

Don't include:

• franking credits tax offsets if the SMSF is complying (include these at label E1 Complying fund’s franking credits tax offset)
• no-TFN tax offsets (include these at label E2 No-TFN tax offset)
• franking credits attributable to a dividend that's excluded from assessable income because family trust distribution tax has been paid
• franking credits tax offsets for foreign (including New Zealand) imputation credits (the SMSF can't claim these in Australia)
• early stage venture capital limited partnership tax offset – include these at  
  • label D1 Early stage venture capital limited partnership tax offset, and/or
  • label D2 Early stage venture capital limited partnership tax offset carried forward from previous year)
• early stage investor tax offset – include these at  
  • label D3 Early stage investor tax offset, and/or
  • label D4 Early stage investor tax offset carried forward from previous year).

For more information, see Subsection 67-25(1A) and Division 207 of the ITAA 1997.

Non-refundable non-carry forward tax offsets

Write at label C the total of labels C1 Foreign income tax offset and C2 Rebates and tax offsets.

If you didn't write an amount at labels C1 or C2, leave label C blank.

Subtotal 1

Subtract the amount at label C Non-refundable non-carry forward tax offsets from label B Gross tax.

If the answer is:

• positive, write the answer at label T2
• zero or negative, write 0 (zero) at label T2.

If the non-refundable non-carry forward tax offsets are greater than the gross tax, the excess can't be carried forward and is lost.

 

Non-refundable carry forward tax offsets

Non-refundable carry forward tax offsets reduce any remaining tax at label T2 Subtotal 1.

If the total of the non-refundable carry forward tax offsets at label D is greater than the remaining tax at label T2, the excess may be carried forward to a future income year.

If the amount at label T2 is greater than the total of the non-refundable carry forward tax offsets at label D, the remaining tax is shown at label T3 Subtotal 2.

Write at label D the total of labels:

• D1 Early stage venture capital limited partnership tax offset
• D2 Early stage venture capital limited partnership tax offset carried forward from previous year
• D3 Early stage investor tax offset, and
• D4 Early stage investor tax offset carried forward from previous year.

If you didn't write an amount at labels D1, D2, D3 or D4, leave label D blank.

The tax offsets shown at label D aren't refundable.

Early stage venture capital limited partnership tax offset

An SMSF may be able to claim the early stage venture capital limited partnership (ESVCLP) tax offset if one or both of the following applies:

• it is entitled to the ESVCLP tax offset in 2025–26
• it has an amount of unused ESVCLP tax offset carried forward from a previous year.

Early stage venture capital limited partnership tax offset

Is the SMSF entitled to claim an ESVCLP tax offset for contributions made during 2025–26?

• No – Leave label D1 blank. Go to label D2.
• Yes – Read on.

The SMSF's 2025–26 ESVCLP tax offset is the total of its tax offsets based on the SMSF's contributions to the ESVCLP as either:

• a limited partner of the ESVCLP
• through a partnership or a trust.

The ESVCLP must have become unconditionally registered on or after 7 December 2015.

If the SMSF is a limited partner of an ESVCLP, the SMSF's tax offset is limited to 10% of the lesser of the following:

• the SMSF's total contributions to the ESVCLP during 2025–26 (certain exclusions apply)
• the investment related amount, that is, the SMSF's share (based on the SMSF's interest in the entire capital of the ESVCLP at the end of the current income year) of the total of eligible venture capital investments made by the ESVCLP during the period starting at the start of the current income year and ending 2 months after the end of the current income year.

If the SMSF is a partner in a partnership or a beneficiary of a trust which has contributed to an ESVCLP, the SMSF may be entitled to an amount of ESVCLP tax offset. A written notification will be provided by the partnership or trustee of the trust setting out the SMSF's entitlement to this tax offset. If a written notification hasn't been provided, contact the partnership or the trustee.

Write the total amount of the 2025–26 ESVCLP tax offset at label D1.

For more information on the ESVCLP tax offset and the eligibility requirements, see ESVCLP tax incentives and concessions.

ESVCLP tax offset carried forward from previous year

Does the SMSF have an amount of unused ESVCLP tax offset carried forward from a previous year?

• No – Leave label D2 blank. Go to label D3.
• Yes – Read on.

To work out whether the SMSF can carry forward an amount of ESVCLP tax offset from a previous year to 2025–26, see Division 65 of the ITAA 1997.

The unused ESVCLP tax offset carried forward from a previous year may need to be adjusted for any net exempt income.

The unused ESVCLP tax offset carried forward from a previous year is reduced by 30 cents for every dollar of net exempt income, provided the SMSF had taxable income for that year.

Write at label D2 the amount of unused ESVCLP tax offset carried forward from the previous year, less any reductions, if applicable.

For more information, see:

• ESVCLP tax incentives and concessions.
• Subdivision 61-P of the ITAA 1997.

Early stage investor tax offset

An SMSF may be entitled to the early stage investor tax offset for the income year if the fund either:

• invested in an early stage innovation company during the year
• has an amount of unused early stage investor tax offset carried forward from a previous year.

The maximum offset (including current year and carried forward prior year amounts) that the fund, and its affiliates combined, can claim in 2025–26 is $200,000.

Early stage investor tax offset

Is the SMSF entitled to claim an early stage investor tax offset in 2025–26?

• No – Leave label D3 blank. Go to label D4.
• Yes – Read on.

Steps to calculate the early stage investor tax offset

Step 1: Work out the total amount the SMSF paid for eligible shares in early stage innovation companies in 2025–26.

If the requirements of the 'sophisticated investor' test under the Corporations Act 2001 aren't met for at least one of the investments in an early stage innovation company during 2025–26 the step 1 amount must not exceed $50,000. If the step 1 amount exceeds $50,000 the SMSF can't claim this offset.

Step 2: Multiply the step 1 amount by 20%.

Step 3: Identify the SMSF's entitlements to any early stage investor tax offsets as a beneficiary of a trust or a partner in a partnership that has invested in an early stage innovation company in 2025–26.

If the SMSF is a partner in a partnership or a beneficiary of a trust which has invested in an early stage innovation company during 2025–26, the SMSF may be entitled to an early stage investor tax offset. A written notification will be provided by the partnership or trustee of the trust setting out the SMSF's entitlement to this tax offset. If a written notification hasn't been provided, contact the partnership or the trustee.

Step 4: Add together the amounts at step 2 and step 3. This is the step 4 amount.

Step 5: Subtract from $200,000 the amount (if any) reported at label D4 Early stage investor tax offset carried forward from previous year. This result is the step 5 amount.

Step 6: If the step 4 amount is equal to or less than the step 5 amount, write the step 4 amount at label D3.

If the step 4 amount is greater than the step 5 amount, write the step 5 amount at label D3.

The amount reported at label D3 may need to be further reduced if any of the SMSF’s affiliates are entitled to the early stage investor tax offset (whether for investments they made in 2025–26 or carried forward from a previous year).

The maximum offset (including current year and carried forward prior year amounts) that the SMSF, and its affiliates combined, can claim in 2025–26 is $200,000.

Early stage investor tax offset carried forward from previous year

Does the SMSF have an amount of unused early stage investor tax offset carried forward from a previous year?

• No – Leave label D4 blank. Go to label D.
• Yes – Read on.

To work out whether the SMSF can carry forward an amount of the early stage investor tax offset from a previous year to 2025–26, see Division 65 of the ITAA 1997.

The unused early stage investor offset carried forward from a previous year may need to be adjusted for any net exempt income.

The unused early stage investor tax offset carried forward from a previous year is reduced by 30cents for every dollar of net exempt income, provided the SMSF had taxable income for that year.

Write at label D4 the amount of unused early stage investor tax offset carried forward from the previous year, less any reductions, if applicable.

For more information on the early stage investor tax offset and the eligibility requirements, see Tax incentives for early stage investors.

For more information, see:

• Division 65 of the ITAA 1997
• Subdivision 360-A of the ITAA 1997.

Subtotal 2

Subtract the amount at label D Non-refundable carry forward tax offsets from label T2 Subtotal 1.

If the answer is:

• positive, write the answer at label T3
• zero or negative, write 0 (zero) at label T3.

If the non-refundable carry forward tax offsets are greater than the subtotal at label T2, the excess may be carried forward and applied in a later income year.

 

Refundable tax offsets questions

If the SMSF is entitled to any refundable tax offsets, the offsets reduce any remaining tax at label T3 Subtotal.

If the amount of refundable tax offsets exceeds the remaining tax at label T3, show the excess at label I Tax offset refunds.

If the amount of refundable tax offsets is less than the remaining tax at label T3 the shortfall becomes the tax payable amount at label T5.

Complying fund’s franking credits tax offset

For details on entitlement to a franking credits tax offset, see Entitlement to franking credits tax offset.

Is the SMSF entitled to a complying fund's franking credits tax offset?

• No – Leave label E1 blank. Go to label E2.
• Yes – Read on.

Write the franking credits tax offsets at label E1.

You must also include the franking credits as income at the appropriate question in Section B.

Include at label E1 Australian franking credits that are attached to:

• dividends and non-share dividends including where they are exempt current pension income
• a New Zealand franking company's  
  • franked non-share dividends, and
  • assessable franked dividends.

Don't include:

• franking credits if the SMSF is non-complying (include these at label C2 rebates and tax offsets)
• credits that you included at label C1 Foreign income tax offset
• franking credits attributable to a dividend that's excluded from assessable income because family trust distribution tax has been paid
• New Zealand imputation credits (an Australian resident can't claim New Zealand imputation credits).

For more information, see Section 67-25 and Division 207 of the ITAA 1997.

No-TFN tax offset

An SMSF is entitled to a no-TFN tax offset in 2025–26 if:

• it was required to pay extra tax on no-TFN contributions in any of the previous 3 income years
• the no-TFN contributions were for a member who gave their TFN to the SMSF for the first time in 2025–26.

Is the SMSF entitled to a no-TFN tax offset?

• No – Leave label E2 blank. Go to label E3.
• Yes – Read on.

Write the no-TFN tax offset at label E2.

The amount of no-TFN tax offset that the SMSF can claim is the total of the additional no-TFN contributions tax (see J Tax on no-TFN contributions) that the SMSF was required to pay:

• in any of the 3 previous income years
• for members who gave their TFN to the SMSF for the first time in 2025–26.

Because SMSF members are generally either trustees of the SMSF, or directors of a corporate trustee, it is rare for an SMSF to pay no-TFN contributions tax, and therefore rare for SMSFs to be entitled to a no-TFN tax offset. Penalties may apply if you claim a no-TFN tax offset that the SMSF isn't entitled to.

For more information, see Section 67-23 and Subdivision 295-J of the ITAA 1997.

National rental affordability scheme tax offset

Is the SMSF entitled to a national rental affordability scheme (NRAS) tax offset?

• No – Leave label E3 blank. Go to label E Refundable tax offsets.
• Yes – Read on.

Write the NRAS tax offset at label E3.

The refundable tax offset is only available when the Secretary of the Department of Social Services has issued a certificate under the NRAS. In order to claim the tax offset in the 2025–26 SMSF annual return, the NRAS certificate must relate to the NRAS year 1 May 2025 to 30 April 2026.

The amount of the tax offset is the amount in the NRAS certificate.

For more information, see:

• National rental affordability scheme – taxation issues 
• Section 67-23 and Division 380 of the ITAA 1997.

Refundable tax offsets

Write at label E the total of labels:

• E1 Complying fund's franking credits tax offset
• E2 No-TFN tax offset
• E3 National rental affordability scheme tax offset

The tax offsets reduce the tax that remains at label T3 Subtotal. If the amount of refundable tax offsets at label E:

• is less than the tax at label T3, the shortfall becomes the SMSF's tax payable amount at label T5 Tax payable
• is greater than the tax at label T3, show the excess at label I Tax offset refunds.

Tax payable

Label T5 is mandatory. If you leave label T5 blank, you will have specified a zero amount.

Is the amount at label T3 Subtotal more than the amount at label E Refundable tax offsets?

• No – Write 0 (zero) at label T5.
  
  Subtract the amount at label T3 Subtotal from label E Refundable tax offsets.
  
  Write the result at label I Tax offset refunds.
• Yes – Subtract the amount at label E Refundable tax offsets from label T3 Subtotal.
  
  Write the result at label T5.

 

 

Section 102AAM interest charge

An interest charge is imposed on certain distributions from non-resident trusts under Section 102AAM of the Income Tax Assessment Act 1936.

Is the SMSF required to pay a Section 102AAM interest charge?

• No – Leave label G blank.
• Yes – Write at label G the Section 102AAM interest charge that the SMSF is required to pay.

Eligible credit questions

If the SMSF is entitled to any credits for tax or TFN amounts withheld or for interest, the total eligible credits are available as a credit amount in the overall calculation. If the amount of eligible credits exceeds the tax payable and the levy amount then the SMSF may be entitled to a refund of the excess.

Credit for tax withheld – foreign resident withholding

Is the SMSF entitled to a credit for tax withheld through foreign resident withholding in Australia?

• No – Leave label H2 blank. Go to label H3.
• Yes – Read on.

Don't include credits for amounts withheld from foreign resident capital gains withholding at label H2. Include these at label H8 Credit for amounts withheld from foreign resident capital gains withholding.

Write at label H2 the total amount of tax withheld from payments to the SMSF that were subject to foreign resident withholding in Australia. Include at label H2 the SMSF’s share of foreign resident withholding credits distributed to the SMSF from a partnership or included in a share of net income from a trust.

If a payer has withheld tax for foreign resident withholding from a payment to the SMSF, the payer must give the SMSF a payment summary that shows how much the payer withheld from its payments to the SMSF.

If you claim a credit at label H2:

• you must include the corresponding gross payment at the appropriate item in Section B
• you must complete a Non-individual PAYG payment summary schedule.

The SMSF is entitled to a credit at label H2 only if the amount was both:

• withheld in Australia
• remitted to us.

For more information, see PAYG withholding.

Credit for tax withheld – ABN or TFN not quoted (non-individual)

Is the SMSF entitled to credits for tax withheld where it didn't quote its Australian business number (ABN) or tax file number (TFN)?

• No – Leave label H3 blank. Go to label H5.
• Yes – Read on.

Write at label H3 the total tax withheld from payments to the SMSF because the SMSF had not quoted its ABN or TFN.

If a payer has withheld tax from a payment to the SMSF because the SMSF didn't quote its ABN or TFN, the payer must give the SMSF a payment summary that shows how much tax was withheld.

Don't include at label H3:

• contributions that the SMSF received for a member who hasn't quoted their TFN (include these at Section B, item 11 – label R3 No-TFN-quoted contributions)
• amounts withheld from payments because the SMSF didn't provide its TFN to the trustee of a closely held trust (include these at label H5).

If you claim a credit at label H3:

• you must include the corresponding gross payment at the appropriate item in Section B
• complete a Non-individual PAYG payment summary schedule.

For more information, see PAYG withholding.

Credit for TFN amounts withheld from payments – closely held trusts

Is the SMSF entitled to credits for TFN amounts withheld from payments from closely held trusts?

• No – Leave label H5 blank. Go to label H6.
• Yes – Read on.

Write at label H5 the total tax withheld from payments where the SMSF as a beneficiary of the trust hasn't provided its TFN to the trustee of a closely held trust and the payment is subject to the TFN withholding rules.

If a closely held trust has withheld tax from a payment to the SMSF because the SMSF didn't provide its TFN, the closely held trust must give the SMSF a payment summary that specifies how much it withheld from its payments to the SMSF.

If you claim a credit at label H5:

• the corresponding gross payment must be included at the appropriate item in Section B)
• you must complete a Non-individual PAYG payment summary schedule 2026.

For more information, see TFN withholding for closely held trusts.

Credit for interest on no-TFN tax offset

Is the SMSF entitled to interest on no-TFN tax offsets?

• No – Leave label H6 blank. Go to label H8.
• Yes – Read on.

If the SMSF hasn't claimed a no-TFN tax offset at label E2, it can't claim a credit at label H6.

Write at label H6 the total calculated interest amount of 50c or more for interest payable on the no-TFN tax offset claimed at label E2 No-TFN tax offset. Don't include no-TFN tax offsets at label H6 (include these offsets at label E2 No-TFN tax offset).

Interest on the no-TFN tax offset is only payable if all the following occurred:

• the member of the SMSF provided their TFN to their employer before the end of a past income year
• the employer was required by Section 299C of the Superannuation Industry (Supervision) Act 1993 (SISA) to inform the SMSF of the individual’s TFN by the end of the year, but didn't do so
• contributions made for that member were no-TFN contributions in that past income year and the SMSF was required to pay additional tax (which is the interest bearing tax) on those contributions
• the SMSF claimed a no-TFN tax offset in 2025–26 for the additional tax paid on those no-TFN contributions in a past income year
• the no-TFN tax offset is applied when assessing the SMSF for 2025–26.

The rate of interest payable on the interest-bearing tax is the base interest rate determined under Section 8AAD of the Taxation Administration Act 1953 (TAA).

Keep a record of the amount of interest payable on tax that counts towards the no-TFN tax offset. This interest is assessable income of the SMSF in the income year in which it is paid to the SMSF or credited against another SMSF liability.

For more information, see Interest on no-TFN tax offset.

Credit for amounts withheld from foreign resident capital gains withholding

Is the SMSF entitled to a credit for tax withheld through foreign resident capital gains withholding in Australia?

• No – Leave label H8 blank. Go to label H.
• Yes – Read on.

Write at label H8 the total amount of tax withheld from payments to the SMSF that were subject to foreign resident capital gains withholding in Australia. Include at label H8 the SMSF’s share of foreign resident capital gains withholding credits distributed to the SMSF from its share of net income from a trust.

You should only claim at label H8 a credit equal to the amount of foreign resident capital gains withholding paid by a purchaser to the ATO on your behalf. The ATO would have issued you with confirmation of this amount.

Don't include credits for amounts withheld from foreign resident withholding at label H8. Include these at label H2 Credit for tax withheld – foreign resident withholding.

For more information, see Foreign resident capital gains withholding.

Eligible credits

Is there an amount at label:

• H2 Credit for tax withheld – foreign resident withholding
• H3 Credit for tax withheld – where ABN or TFN not quoted (non-individual)
• H5 Credit for TFN amounts withheld from payments from closely held trusts
• H6 Credit for interest on no-TFN tax offset
• H8 Credit for foreign resident capital gains withholding amounts?

If you answer:

• No – Leave label H blank.
• Yes – Write at label H the total of the amounts at labels H2, H3, H5, H6 and H8.

Tax offset refunds

Is the amount at label T3 Subtotal less than the amount at label E Refundable tax offsets?

• No – Write 0 (zero) at label I. Go to label K.
• Yes – Read on.

Subtract the amount at label T3 Subtotal from label E Refundable tax offsets. Write the result at label I.

See the examples at T5 Tax payable showing the calculation of label I Tax offset refunds.

Label T5 is mandatory. If you leave label T5 blank, you are specifying a zero amount.

PAYG instalments raised

Did the SMSF pay, or was it required to pay, PAYG instalments for 2025–26?

• No – Leave label K blank. Go to label L.
• Yes – Read on.

Write at label K the total of the SMSF’s PAYG instalments for 2025–26, whether or not the PAYG instalments have actually been paid.

You can find the SMSF's PAYG instalment amounts on its activity statements.

If the SMSF used the instalment amounts worked out by us, its PAYG instalment amounts were pre-printed at either label:

• T7 on the SMSF’s quarterly activity statements
• T5 on the annual instalment activity statement.

If the SMSF didn't use the instalment amounts worked out by us, work out its PAYG instalment amounts by subtracting the credits claimed at label 5B from the amounts reported at label 5A on its activity statements.

To ensure the SMSF receives the correct amount of credit for its PAYG instalments, make sure all of its activity statements are finalised before lodging the annual return. If the SMSF is required to lodge its activity statements, it should do so even if it can’t pay on time, or has nothing to pay.

The SMSF is entitled to a credit for its PAYG instalments even if it hasn't actually paid a particular instalment. However, the SMSF will be liable for the general interest charge on any outstanding instalment for the period from the due date for that instalment until the date it is fully paid.

You must exclude the SMSF's exempt current pension income from the amount you write at label T1 PAYG instalment income on the PAYG activity statement if you use the instalment rate method to calculate your SMSF's PAYG instalments.

Supervisory levy

Labels L, M and N are used to calculate the amount of SMSF supervisory levy that the SMSF must pay with the 2026 SMSF annual return. The amount that you must write at each of these items depends on whether the SMSF was:

• an existing SMSF at the start of 2025–26 and was not wound up in 2025–26
• a newly registered SMSF in 2025–26 and its first SMSF annual return is for 2025–26
• wound up during 2025–26
• both newly registered and wound up during 2025–26.

Table 9 shows the amounts you must write at labels M and N. Label L is already completed.

Table 9: Supervisory levy amounts

Type of SMSF	Amount at L $	Amount at M $	Amount at N $	Net amount (L−M+N) $	Comment
Existing SMSF that was not wound up in 2025–26	259	0 or blank	0 or blank	259	The SMSF supervisory levy amount is for 2026–27.
Newly registered SMSF in 2025–26 that was not wound up in 2025–26	259	0 or blank	259	518	The SMSF supervisory levy amount is for 2025–26 and 2026–27.
Newly registered SMSF in 2025–26 that was wound up in 2025–26	259	0 or blank	0 or blank	259	The SMSF supervisory levy amount is for 2025–26.
Existing SMSF that was wound up in 2025–26	259	259	0 or blank	0	No SMSF supervisory levy is due.

Supervisory levy

Label L shows the amount of supervisory levy due for 2026–27 ($259). Don't change the amount printed on the annual return.

The supervisory levy is included in the SMSF’s tax assessment calculation and is to be paid with its income tax liability. The levy is payable even if the SMSF has no tax liability 2025–26.

For more information, see Superannuation (Self-Managed Superannuation Funds) Supervisory Levy Imposition Act 1991External Link.

Supervisory levy adjustment for wound up funds

Was the SMSF wound up in 2025–26?

• No – Leave label M blank. Go to label N.
• Yes – Write $259.00 at label M. Make sure you answered Yes in Section A, item 9 Was the fund wound up during the income year?

An SMSF which was wound up during 2025–26 doesn't pay the SMSF supervisory levy for 2026–27. Writing $259 at label M reduces the levy payable by $259 since the amount that you write at label M will be subtracted when you calculate label S Amount due or refundable.

Supervisory levy adjustment for new funds

Is this the first annual return for a newly registered SMSF?

• No – Leave label N blank. Go to label S.
• Yes – Write $259.00 at label N. Make sure you answered Yes to Section A, item 5 – label B Is this the first required return for a newly registered SMSF?

The amount at label N is the SMSF supervisory levy for 2025–26. SMSFs that are lodging their first annual return haven't paid this amount previously while the other SMSFs paid the SMSF supervisory levy for 2025–26 with their 2025 SMSF annual return.

For more information, see SMSF supervisory levy.

Amount due or refundable

To work out label S:

• add labels  
  • T5 Tax payable
  • G Section 102AAM interest charge
  • L Supervisory levy
  • N Supervisory levy adjustment for new funds
• and then subtract labels  
  • H Eligible credits
  • I Tax offset refunds
  • K PAYG instalments raised
  • M Supervisory levy adjustment for wound up funds.

Label S Amount due or refundable can be zero, positive or negative:

• a positive amount is what you must pay to us
• a negative amount is the refund you will receive.

If the amount at label S is negative, write a minus sign (−) to the left of the amount that you printed at label S.

If the amount at label S is negative, complete Section A, item 7 Electronic funds transfer (EFT) to receive the refund.

If the SMSF has made any interim or voluntary payments against its 2025–26 tax liability:

• don't take the payments into account when working out the amount at label S
• take the payments into account when working out the amount you must pay to us.

Don't attach any payment to the annual return. For more information, see Payment.

Record keeping

The SMSF must keep:

• all documentation issued by financial institutions detailing  
  • payments of income
  • any TFN amounts deducted from those payments
• details of any TFN amounts deducted from the SMSF's income payments and subsequently refunded to the SMSF by the financial institution.

Where an amount is refunded the SMSF must keep details of the:

• amount of refund
• date of refund
• investment reference number, for example, the bank account number of the investment relating to the refund.

Continue to: Section E: Losses – item 14

Return to: Instructions to complete your SMSF annual return 2026

 

 

 

Section E and the losses schedule

You don't need to complete Section E if the SMSF has no tax losses or capital losses to carry forward to later income years.

In addition to recording losses in Section E, complete a Losses schedule 2026 and attach it to the annual return if the SMSF has either:

• a combined total for tax losses and net capital losses carried forward to later income years of greater than $100,000
• an interest in a controlled foreign company (CFC) that has either: 
  • 2025–26 losses greater than $100,000, or
  • deducted or carried forward to later income years a loss greater than $100,000.

Don't show cents for any amount you write in this section.

14 Losses

In this section, complete labels:

• Tax losses carried forward to later income years
• Net capital losses carried forward to later income years

Tax losses carried forward to later income years

Does the SMSF have tax losses to be carried forward to later income years?

• No – Leave label U blank. Go to label V.
• Yes – Read on.

Write at label U the total tax losses of the SMSF that are to be carried forward to later income years. The amount is the total of both:

• the SMSF’s tax loss for 2025–26
• the SMSF’s prior year tax losses to the extent that they haven't previously been utilised within the meaning of section 960-20 of the ITAA 1997.

The SMSF's 2025–26 net exempt income, if any, is taken into account to calculate the amount of its tax loss for 2025–26.

If the SMSF's 2025–26 net exempt income is greater than the amount by which the SMSF's deductions (not including prior year tax losses) exceed its assessable income in 2025–26, the SMSF's 2025–26 tax loss will be nil and the surplus net exempt income will reduce prior year losses.

If you lodge a Losses schedule 2026, the amount at label U Tax losses carried forward to later income years on that schedule (item 1 in part A) must be the same as the amount at label U, Section E on the annual return.

Don't include:

• a loss at label U if you wrote a positive amount at Section C, item 12 – label O Taxable income or loss
• net capital losses to be carried forward to later income years at label U; include these at label V Net capital losses carried forward to later income years and in the CGT schedule (if a schedule is required)
• losses that relate to non-arm's length income. Losses that relate to non-arm's length income can't be applied against the SMSF's arm's length income. You should keep a record of losses that relate to non-arm's length income with the SMSF’s tax records.

For more information, see:

• Losses
• Sections 36-15 and 960-20 of the ITAA 1997.

Tax losses and record keeping

If the SMSF incurred tax losses, it may need to keep records for longer than 5 years from the date it incurred the losses.

Generally, you can carry forward tax losses indefinitely until they are applied by recoupment. When applied, the loss amount is a figure that's included in the calculation of the SMSF’s taxable income in that year.

It is in the SMSF’s interest to keep records substantiating its 2025–26 losses until the amendment period for the assessment in which the losses are applied has lapsed (in most cases up to 4 years from the date of that assessment).

For more information, see:

• Record-keeping requirements
• Taxation Determination TD 2007/2 Income tax: should a taxpayer who has incurred a tax loss or made a net capital loss for an income year retain records relevant to the ascertainment of that loss only for the record retention period prescribed under income tax law?

Net capital losses carried forward to later income years

Does the SMSF have net capital losses to carry forward to later income years?

• No – Leave label V blank. Go to sections F and G.
• Yes – Read on.

Write at label V the total of any unapplied net capital losses from collectables and unapplied net capital losses from all other CGT assets and events.

If this item applies to the SMSF you must refer to the Guide to capital gains tax 2026 to complete this item. It also explains the special CGT rules that apply to foreign residents and trustees of foreign trusts.

This information is calculated or transferred from:

• 3B in Table 5 and 3A in Table 9 of the CGT summary worksheet
• label A and B at item 3 of the CGT schedule, if one is required.

You can't include a loss at label V if you wrote an amount at Section B, item 11 – label A Net capital gain.

If the SMSF must lodge a Losses schedule 2026, the amount on that schedule at Part A, item 2 – label V Net capital losses carried forward to later income years must be the same as the amount at label V here on this annual return.

For more information, see Guide to capital gains tax 2026.

Continue to: Sections F and G: Member information and Supplementary member information

Return to: Instructions to complete your SMSF annual return 2026

How to complete Section F and G

Report contributions, other transactions, and account balances for each of the SMSF's members:

• in Section F, for those who had an account on 30 June 2026
• in Section G, for those who left the SMSF during 2025–26, before 30 June 2026.

Each page in Section F and Section G is a statement of the transactions on a member's account in 2025–26.

Complete a separate page in either Section F or Section G for every person that was a member of the SMSF during 2025–26.

If a member has multiple accounts, combine them so that each member has only one statement in either Section F or Section G.

Each member's opening account balance (at 1 July 2025) should equal their closing account balance in the prior year (at 30 June 2025). The closing balance (at 30 June 2026) should reflect the value of the member’s actual interest in the SMSF. The amounts that you record in Section F and Section G summarise all the transactions that affect that balance.

Section G has the same information as Section F plus 2 additional questions:

• the account status code box
• the date of death for deceased members.

Who do you include in Section F and Section G?

In Section F, include anyone who was a member of the SMSF on 30 June 2026, even if the SMSF either:

• paid them an income stream during 2025–26
• received no contributions for them during 2025–26.

The total of the amounts you show at labels S1, S2 and S3 must equal the Closing account balance at label S.

For retirement phase accounts:

• label S2 is the closing account balance of non-capped defined benefit income streams (NCDBIS) such as account based pensions and annuities
• label S3 is the closing account balance of capped defined benefit income streams (CDBIS) such as lifetime pensions and annuities and life expectancy pensions and annuities.

Complete a Transfer balance account report (TBAR) if an SMSF member had a transfer balance account event such as:

• taking a lump sum payment from their retirement phase account
• starting a new retirement phase superannuation income stream
• commuting and rolling over a retirement phase superannuation income stream to another superannuation fund.

For more information on the events you need to report, see What and when to report.

In Section G, include anyone who was a member of the SMSF at any time during 2025–26, but is not a member on 30 June 2026. This could include:

• deceased members (even if there was money in their account on 30 June 2026)
• former members who left the SMSF by rolling out all their benefits
• former members who left the SMSF by being paid all of their benefits as a super lump sum or the final payment of an income stream.

If the SMSF has more than 6 members on 30 June 2026:

• the SMSF has breached superannuation law and will no longer be an SMSF (see the self-managed superannuation fund definition)
• include in Section G the members whom you can't include in Section F due to lack of space.

Our use of information in Section F and Section G

We use the information in Section F and Section G to:

• determine members' entitlements to the super co-contribution and government super contributions
• make a determination or assessment of excess contributions for members
• assess Division 293 tax for members
• check superannuation guarantee compliance of employers.

We don't use the information in Sections F and G to update other SMSF records. Complete a Change of details form, NAT 3036, to update all other records.

Member information

Print X in the appropriate box for the member's title, or write a different title using the boxes at Other.

Write the member's:

• family name
• first given name
• other given names
• tax file number (TFN)
• date of birth.

The Taxation Administration Act 1953 authorises us to request the member’s TFN, see privacy statement.

Make sure you write the member’s TFN, not the SMSF's TFN or a tax agent number (TAN) which also are 9 digit numbers.

For members reported in Section G, you also:

• write the date of death, if the member died during 2025–26
• print the account status code (from Table 10: Account status codes) in the Account status code box.

Table 10: Account status codes

Code	Account status
O	The member’s account was open on 30 June 2026, and the SMSF will accept payments from us.
C	The former member’s account was closed at 30 June 2026, and the SMSF will not accept payments from us.

Contributions questions

In this section, complete labels:

Opening account balance

Write the member’s opening account balance at 1 July 2025.

The opening account balance is either:

• the 2024–25 closing account balance
• zero if the member joined the fund in 2025–26.

Contributions

Print at labels A to M the gross total of the contributions received by the SMSF in 2025–26 for each member.

Don't reduce the amount that you write at labels A to M by (for example) allowances for taxes and fees.

Include contributions that the SMSF received in 2025–26 even if:

• some or all of those contributions had been  
  • transferred or rolled over to another fund in 2025–26
  • paid to the member as a super lump sum or income stream in 2025–26
• the SMSF was wound up in 2025–26.

Don't include amounts credited to accounts but not yet received by 30 June 2025. Declare all amounts received after 30 June 2026 in the annual return for the year in which the SMSF actually received the contribution.

If you received a contribution in one financial year and chose not to allocate it until the following financial year, there are reporting requirements for both trustees and members in relation to the cap on excess concessional contributions. Before completing your annual return, see Request to adjust concessional contributions.

You must write contributions amounts at the correct items so we can determine your members' eligibility for super co-contributions or low income super amounts, and accurately determine your member's excess concessional contributions, excess non-concessional contributions and liability for Division 293 tax.

For more information, see Taxation Ruling TR 2010/1 Income tax: superannuation contributions.

Employer contributions

Employer contributions include:

• contributions made by an employer for an employee (including contributions made under a salary sacrifice arrangement or to meet the employer's obligations under the super guarantee, awards, agreements or other obligations)
• super guarantee charge shortfall amounts
• employer contributions transferred from our (the ATO's) super holding accounts special account (SHA special account).

Did the SMSF receive employer contributions for the member?

• No – Leave label A blank. Go to label B Personal contributions.
• Yes – Read on.

Complete labels A and A1.

Write at label A the total value of employer contributions made for the member in 2025–26. Don't include:

• contributions made by the member, even where the member has given the SMSF a Notice of intent to claim or vary a deduction for personal super contributions that applies to the contribution and the SMSF has acknowledged it (include these at label B Personal contributions)
• contributions that the member asked their employer to deduct from their after-tax income (include these at label B Personal contributions)
• employment termination payments received from an employer (include these at label B Personal contributions).

If you have used a contribution reserve strategy for concessional contributions as described in Taxation Determination TD 2013/22 Income tax: 'concessional contributions' - allocation of a superannuation contribution with effect from a day in the financial year after the financial year in which the contribution was made:

• employer contributions which were received in 2025–26 must be included at label A even if they weren't allocated to the member’s account before 1 July 2026
• the relevant members may need to complete Request to adjust concessional contributions
• if a member received employer contributions and part or all of the contributions were made by a non-related employer, you must include the following at Section A, item 7  
  • Fund's financial institution account details, and
  • Electronic service address alias (ESA alias).

Members with a defined benefit interest

If the member has a defined benefit interest in the SMSF, include at label A their notional taxed contributions.

The notional taxed contributions are generally the amount of the assessable contributions which the trustee has allocated to the member’s defined benefit interest during the financial year. See Section 291–170.03 of the Income Tax Assessment (1997 Act) Regulations 2021.

If a member has both a defined benefit interest and an accumulation interest in the SMSF, include at label A both:

• the total of the notional taxed contributions
• any employer contributions made to their accumulation account.

For more information, see Super contributions to defined benefit and constitutionally protected funds.

ABN of principal employer

Write at label A1 the ABN of the employer who made contributions to the member’s account.

If more than one employer contributed to the member’s account, write the ABN of the employer that contributed the largest amount in 2025–26.

Personal contributions

Did the SMSF receive personal contributions for the member?

• No – Leave label B blank. Go to label C.
• Yes – Read on.

Write at label B the total value of personal contributions made for the member in 2025–26, other than contributions subject to elections to exclude them from the contributions caps.

Elections that exclude personal contributions from the contributions caps are:

• the CGT small business retirement exemption (include these contributions at label C CGT small business retirement exemption)
• CGT small business 15-year exemption amount (include these contributions at label D CGT small business 15-year exemption amount)
• personal injury election (include these contributions at label E personal injury election)
• downsizer election for contribution of the proceeds from primary residence disposal (include these contributions at label H proceeds from primary residence disposal.

Include at label B:

• contributions received from an employer for the member paid from the member's after tax income
• contributions made by the member themselves (regardless of whether they have been claimed or can be claimed by the member as a tax deduction)
• personal contributions funded by personal injury payments that aren't included at label E Personal injury election
• personal contributions funded by the proceeds of the sale of assets, other than those you include at labels  
  • C CGT small business retirement exemption
  • D CGT small business 15-year exemption amount
• contributions received from a non-complying super fund (include all amounts received from a non-complying super fund).

Contributions by the member under the re-contribution of COVID-19 early release amounts where the member both:

• completed a Notice of re-contribution of COVID-19 early release amounts form
• gave the notice to the fund when, or before, the contribution was made.

Don't include at label B:

• amounts excluded from the member's non-concessional contributions and which you include at labels  
  • C CGT small business retirement exemption
  • D CGT small business 15-year exemption amount
  • E Personal injury election
  • H Proceeds from primary residence disposal
• amounts contributed for the member under salary sacrifice arrangements they have entered into (write these at label A Employer contributions)
• a rollover super benefit reported at item 13 on a Rollover benefits statement which the SMSF received from another super provider (write the benefit at label P Inward rollovers and transfers)
• a super lump sum from a foreign super fund or scheme (include these at labels I, J or M)
• contributions made by the member’s spouse or other third party contributions (include these at labels F or G).

If you have used a contribution reserve strategy for personal contributions similar to the strategy described in Taxation Determination TD 2013/22 for concessional contributions:

• you must include at label B any personal contributions which you received in 2025–26, even if they weren't allocated to the member’s account before 1 July 2026.
• the relevant members may need to complete a Request to adjust concessional contributions form for the amount of personal contributions they are claiming as tax deduction.

CGT small business retirement exemption

Did the SMSF receive personal contributions for the member that the member elected to exclude from their non-concessional contributions with a CGT small business retirement exemption?

• No – Leave label C blank. Go to label D.
• Yes – Read on.

Write at label C the total value of personal contributions made by the member in 2025–26 that the member elected to exclude from their non-concessional contributions with a CGT small business retirement exemption.

To include an amount at label C the SMSF must have received a valid capital gains tax cap election from the member.

The CGT cap election is valid if both:

• the member gave it to the SMSF on or before the date the contribution was made
• the SMSF hasn't been advised or become aware that the cap election is no longer valid or applicable.

The exemption from being a non-concessional contribution isn't effective if the member made the CGT cap election after making the contribution.

There are 2 limits that affect the amount you include at label C:

• The CGT small business retirement exemption lifetime limit – a member can't elect to apply a CGT small business retirement exemption to more than $500,000 during their lifetime.
• The CGT cap – this cap limits the amount of exemptions that a member can claim through a CGT cap election during their lifetime. The amounts at label C CGT small business retirement exemption and label D CGT small business 15-year exemption both apply to the CGT cap. The CGT cap is indexed annually. In 2025–26 the lifetime limit for the CGT cap is $1,865,000.

Don't include amounts at label C:

• if you are aware that a CGT cap election isn't valid or that the election isn't applicable (include these at label B Personal contributions)
• that are in excess of the CGT small business retirement exemption lifetime limit or the CGT cap (include these at label B Personal contributions).

If you become aware that a CGT cap election isn't valid or applicable after you have lodged the SMSF annual return, you must lodge an amended annual return.

For more information, see:

• Small business retirement exemption 
• Untaxed plan cap amount for the CGT cap amount.

CGT small business 15-year exemption amount

Did the SMSF receive personal contributions for the member that the member elected to exclude from their non-concessional contributions with a CGT small business 15-year exemption amount?

• No – Leave label D blank. Go to label E.
• Yes – Read on.

Write at label D the total value of personal contributions made by the member in 2025–26 that the member elected to exclude from their non-concessional contributions with a CGT small business 15-year exemption amount.

You can include a member's personal contribution at label D if it either:

• qualifies for the small business 15-year exemption
• would qualify for the small business 15-year exemption but for the fact that  
  • the asset was a pre-CGT asset, or
  • there was no capital gain, or
  • the 15-year holding period wasn't met because of the permanent incapacity of the person (or of a significant individual of a company or trust).

To write an amount at label D the SMSF must have received a valid capital gains tax cap election from the member.

The CGT cap election is valid if:

• the member gave it to the SMSF on or before the date the contribution was made
• the SMSF hasn't been advised or become aware that the CGT cap election is no longer valid or applicable.

The exemption from being a non-concessional contribution isn't effective if the member made the CGT cap election after making the contribution.

The amount that you include at label D may be limited by the CGT cap. This cap limits the amount of exemptions that a member can claim through a CGT cap election during their lifetime. The amounts at label C CGT small business retirement exemption and label D CGT small business 15-year exemption both apply to the CGT cap. The CGT cap is indexed annually. In 2025–26 the lifetime limit for the CGT cap is $1,865,000.

Don't include amounts at label D:

• if you are aware that a CGT cap election isn't valid or that the election isn't applicable (include these at label B Personal contributions)
• that are in excess of the CGT cap (include these at label B Personal contributions).

If you become aware that a CGT cap election isn't valid or applicable after you have lodged the SMSF annual return, you must lodge an amended annual return.

For more information, see:

• Small business retirement exemption 
• CGT cap amount.

Personal injury election

Did the SMSF receive personal contributions for the member funded by personal injury payments and where the member has elected to exclude the contributions from their non-concessional contributions?

• No – Leave label E blank. Go to label F.
• Yes – Read on.

Write at label E the total value of all personal contributions made by the member in 2025–26 that were eligible personal injury payments, and where the member has elected that the contributions be excluded from their non-concessional contributions.

Eligible personal injury payments are either of the following:

• a payment made under a written settlement agreement regarding a claim for damages for personal injury or a court order for such a claim
• a workers compensation payment taken as a lump sum.

To write an amount at label E, the SMSF must have received a valid Contributions for personal injury election from the member or the member's legal personal representative. For information about making this election, see Contributions for personal injury.

Don't include at label E:

• personal injury amounts the SMSF received before the member made a valid Contributions for personal injury election (include these at label B Personal contributions)
• any part of a payment that isn't compensation or damages for personal injury (include these at label B Personal contributions)
• a personal injury amount which the member didn't elect to exclude from their non-concessional contributions (include these at label B Personal contributions)
• a personal injury amount that wasn't contributed to the SMSF within 90 days, or such longer period the Commissioner allows, of whichever of the following events occurs last (in each case include the amount at label B Personal contributions)  
  • the day on which the member received the personal injury payment
  • the day on which the agreement for settlement of a personal injury payment was entered into
  • the day on which a court order for the personal injury payment was made.

For more information, see Contributions for personal injury.

Spouse and child contributions

Did the SMSF receive spouse or child contributions for the member?

• No – Leave label F blank. Go to label G.
• Yes – Read on.

Write at label F the total value of the following contributions made for the member in 2025–26:

• contributions made by the member’s spouse
• contributions made by parents, relatives or others on behalf of a member who is under 18 years old (excluding those made by (or on behalf of) the member’s employer).

Don't include at label F:

• contributions made by a parent for their child who is 18 years old or older (include these at label G Other third party contributions)
• contributions made by a former spouse when the couple have separated and are now living apart on a permanent basis (include these at label G Other third party contributions)
• contributions made by a member who is under 18 years old (include these at label B Personal contributions)
• contributions made by (or on behalf of) a member's employer (include these at label A Employer contributions)
• amounts transferred from a member's spouse's super for the member as a result of a contributions splitting arrangement. These amounts are super contributions for the person that split their contributions and not super contributions for the member that received the transferred amount into their super as a result of the contributions split. Include these transferred amounts at label P Inward rollovers and transfers. For more information, see Contributions splitting.

Other third party contributions

Did the SMSF receive other third party contributions for the member?

• No – Leave label G blank. Go to label H.
• Yes – Read on.

Write at label G the total value of all of the following third-party contributions the SMSF received for the member in 2025–26:

• contributions made by the member’s former spouse
• contributions made by the member's current spouse who is now living separately and apart from the member on a permanent basis
• contributions made by any other person (excluding the member's employer) seeking to benefit the member where the member is 18 years of age or over
• contributions made by another third party contributor acting under an obligation to contribute for the member, for example  
  • an insurance company where the member’s policy provides for payment of super contributions in the event of sickness or incapacity
  • a government agency making a super contribution under a scheme to compensate injured or incapacitated workers (such as WorkCover Victoria)
  • the ATO or other government agency required to compensate the member through super contributions for errors in their administration of the law
  • a deceased estate where the entitlement is only to a super contribution (the member can't direct that their share in the estate be paid to them personally).

Don't include at label G:

• contributions that you must include at another contribution label A to M
• contributions made for a member who is under 18 years old (include these at label F Spouse and child contributions or label A Employer contributions).

Proceeds from primary residence disposal

Downsizer contributions are contributions made by a member who:

• is 55 years old or older when the contribution is made to the superannuation fund, for contributions made from 1 January 2023
• signs a contract to sell their dwelling on or after 1 July 2018 if the dwelling sold was owned by only one spouse, the spouse who doesn't hold an ownership interest may also make a downsizer contribution, or have one made on their behalf, provided they meet all the eligibility requirements
• provides the trustee of the SMSF with the Downsizer contribution into super form either before or at the time they make their contribution
• hasn't previously made a downsizer contribution to super from the sale of another dwelling
• meets all the other eligibility requirements (see Downsizing contributions into superannuation).

Did the SMSF receive downsizer contributions for the member?

• No – Leave label H and label H1 blank. Go to label I and label J.
• Yes – Read on.

Write at label H the total value of all downsizer contributions made by the member in 2025–26.

The member can make multiple contributions from the proceeds of a single sale of a dwelling.

The downsizer contribution amount can't be greater than the member’s share of the capital proceeds of the sale of their dwelling, up to a maximum (individual) limit of $300,000.

Receipt date

Write at label H1 the date the downsizer contribution was received by the fund.

Downsizer contributions must be made within 90 days of the change in ownership of the dwelling (usually the date of settlement).

If multiple downsizer contributions were made by the member, use the date the last contribution was received by the fund.

Foreign superannuation fund amounts

Did the SMSF receive a transfer for the member from a foreign superannuation fund or scheme?

• No – Leave label I and label J blank. Don't include a foreign super fund amount at label M. Go to label K.
• Yes – Read on.

Write, as explained below, the amount of the transfer or part of the transfer at labels:

• I Assessable foreign superannuation fund amount
• J Non-assessable foreign superannuation fund amount
• M Any other contributions.

Write the transfer from a foreign super fund or scheme received for the member in 2025–26 at label J Non-assessable foreign superannuation fund amount except any part of the transfer that:

• exceeds the amount that was 'vested' in the member at the time of the transfer (include that part at label I Assessable foreign superannuation fund amount)
• the member has made a written choice to include in the assessable income of the SMSF (include that part at label M Any other contributions).

The member can choose to have a transfer, or part of a transfer, included in the assessable income of the SMSF only under certain circumstances. For more information, see Transfer or withdraw from a foreign super fund.

Assessable foreign superannuation fund amount

Did the SMSF receive a transfer from a foreign superannuation fund that exceeded the amount that was 'vested' in the member at the time of transfer?

• No – Leave label I blank. Go to label J
• Yes – Read on.

Write at label I the amount transferred in 2025–26 that exceeded the amount that was 'vested' in the member at the time of transfer.

For an example of 'an amount that isn't vested in the member at the time of transfer' see Example: Transfer from a foreign super fund.

You must include the amount you write at label I Assessable foreign superannuation fund amount in the amount at Section B, item 11 – label F Transfers from foreign funds.

Don't include at label I any part of a transfer from a foreign super fund or scheme that:

• was 'vested' in the member at the time of transfer (write that amount at label J Non-assessable foreign superannuation fund amount or at label M Any other contributions)
• the member made a written choice to include in the assessable income of the SMSF (include that amount at label M Any other contributions).

Non-assessable foreign superannuation fund amount

Did the SMSF receive a transfer from a foreign super fund that isn't assessable income of the SMSF?

• No – Leave label J blank. Go to label K.
• Yes – Read on.

Write at label J the total amount transferred from a foreign super fund or scheme for the member in 2025–26 except any part of the transfer that's assessable income of the fund because either:

• it exceeded the amount that was 'vested' in the member at the time of the transfer (write that part at label I Assessable foreign superannuation fund amount)
• the member has made a written choice to include that amount in the assessable income of the SMSF (write that part at label M Any other contributions).

Transfers from reserves

Did the SMSF transfer any amounts to the member's account from the SMSF's reserves?

• No – Leave label K and label L blank. Don't include a transfer from reserve for the member at label O. Go to label T.
• Yes – Read on.

Write the amount the SMSF transferred in 2025–26 from a reserve to the member's account at labels:

• K Transfer from reserve: assessable amount
• L Transfers from reserve: non-assessable amount
• O Allocated earnings or losses.

For more information, see sections 291-25.01 and 292-90.01 of the Income Tax Assessment (1997 Act) Regulations 2021.

Transfer from reserve: assessable amount

Did the SMSF allocate an amount to the member's account where the amount:

• is an assessable contribution of the SMSF not included at another label, or
• was allocated from a reserve and would be assessable income if the amount was made as a contribution. If you answer:
• No – Leave label K blank. Go to label L.
• Yes – Read on.

Write at label K the total of the assessable amounts allocated in 2025–26 from the SMSF's reserves to the member's account.

In some cases, the amount you write at label K is greater than the amount actually allocated to the member’s account. Where the amount was allocated to the member’s account from a reserve instead of an employer making a contribution to the SMSF, multiply the amount that was transferred from the reserve by 1.176 to include the 15% tax that the SMSF would have paid if the employer had actually made a contribution to the SMSF for the member. Write at label K this grossed-up amount rather than the amount that was transferred from the reserve.

The amount at label K is included in the member's concessional contributions.

If you have used a contribution reserve strategy for concessional contributions as described in Taxation Determination TD 2013/22 then don't include at label K the contributions received by the SMSF in 2025–26 and allocated to the member’s account in the following financial year (instead include those contributions at either label A Employer contributions or label B Personal contributions).

Transfer from reserve: non-assessable amount

Did the SMSF allocate an amount to the member's account where the amount:

• is not an assessable contribution of the SMSF and not included at another question, or
• is not an amount that should be included at label O Allocated earnings or losses (see information at Transfers from reserves that aren't included at K or L).

If you answered:

• No – Leave label L blank. Go to label T.
• Yes – Read on.

Write at label L the non-assessable amount allocated from the SMSF's reserves to the member's account (other than amounts included at label O Allocated earnings or losses).

The amount written at label L is included in the member's non-concessional contributions.

Transfers from reserves that aren't included at K or L

Generally, all allocations from reserves are reported as either assessable or non-assessable amounts, but certain exceptions apply and these amounts are reported at label O Allocated earnings or losses. For example, the following allocations from reserves are included at label O Allocated earnings or losses:

• amounts allocated to all members, or to a class of members to which the reserve relates, on a fair and reasonable basis, and the amount allocated for 2025–26 is less than 5% of the value of the members' interest
• amounts allocated for the sole purpose of discharging super income stream liabilities that are currently payable
• allocations following the commutation of a pension, where the amount in the reserve is allocated to an individual as a result of the death of the primary beneficiary of the pension, and it is used to support another income stream for that individual.

You must include allocations from the reserve of a commuted pension in label O if you didn't report the account balance in 2024–25 for the member at label S2 Retirement phase account balance – Non CDBIS or label S3 Retirement phase account balance – CDBIS.

Contributions from non-complying and previously non-complying funds

Was the SMSF non-complying in 2024–25 and its status changed to complying at the beginning of 2025–26?

• No – Leave label T blank. Go to label M.
• Yes – Read on.

Write at label T the total amount of contributions received for the member where those contributions:

• were made on or after 10 May 2006, and when the SMSF was non-complying, and
• haven’t previously been reported at this question in an earlier year.

Don't include the contributions you write at label T in the member’s ‘Opening account balance’.

Don't include at label T contributions made in 2025–26 when the SMSF was complying. Include these amounts at labels A to M.

Any other contributions

Did the SMSF receive any other contributions for the member (including super co-contributions and low income super amounts) that aren't included at labels A to T?

• No – Leave label M blank. Go to label N.
• Yes – Read on.

Write at label M the total value of other contributions received for the member in 2025–26 that you haven't included at labels A to T.

Include at label M:

• super co-contributions and low income super amounts paid to the SMSF for the benefit of the member by us (including where they are transferred by us to the SMSF from the Superannuation Holding Account (SHA) special account)
• any amount transferred from a foreign super fund or scheme that the member has chosen to have included in the SMSF’s assessable income –see Tax treatment of transfers from foreign super funds)

If a member has received any other contributions (including super co-contributions and low income superannuation amounts), you must include the following at Section A, item 7:

• fund's financial institution account details
• electronic service address alias (ESA).

Don't include at label M amounts transferred from the member's spouse's super as a result of a contributions splitting arrangement. These amounts are super contributions for the person that split their contributions and not super contributions for the member that received the transferred amount into their super as a result of the contributions split. Include these transferred amounts at label P Inward rollovers and transfers.

For more information, see Contributions splitting for members.

Total contributions

Did you write any contributions at labels A to M above for this member?

• No – Write 0 (zero) at label N. Go to Other transactions questions.
• Yes – Read on.

Write at label N the total of all the contributions for this member that you wrote at labels A to M:

• Employer contributions
• Personal contributions
• CGT small business retirement exemption
• CGT small business 15-year exemption amount
• Personal injury election
• Spouse and child contributions
• Other third party contributions
• Proceeds from primary residence disposal
• Assessable foreign superannuation fund amount
• Non-assessable foreign superannuation fund amount
• Transfer from reserve: assessable amount
• Transfers from reserve: non-assessable amount
• Contributions from non-complying funds and previously non-complying funds
• Any other contributions.

Other contribution transactions

At labels O to R2, show transactions for the member in 2025–26 that weren't contribution amounts you include at labels A to M:

• Allocated earnings or losses
• Inward rollovers and transfers
• Outward rollovers and transfers
• Lump sum payments
• Income stream payments

Allocated earnings or losses

If you couldn't include an amount of a transaction at the contribution labels A to M, and can't include it at labels P Inward rollovers and transfers, Q Outward rollovers and transfers, R1 Lump sum payments, or R2 Income stream payments, include it at label O Allocated earnings or losses.

Did the SMSF allocate any earnings, losses, taxes or expenses to the member?

• No – Leave label O blank. Go to label P.
• Yes – Read on.

Write at label O the total of:

• all earnings allocated to this member
• less expenses (including taxes) and losses allocated to this member.

If the amount at label O is a loss, print L in the box to the right of the amount.

Include at label O any transactions affecting the member’s closing balance that you haven't included at another question in Section F or Section G. For example, the amount at label O could include:

• investment earnings allocated to the member's account
• expenses allocated to the member's account
• gains and losses allocated to the member's account
• payments received for the member under an insurance policy held by the SMSF for death or disability cover
• allocations from reserves that aren't included at either labels K Transfer from reserve: assessable amount or L Transfer from reserve: non-assessable amount. For more information, see Transfers from reserves that aren't included at K or L.

Inward rollovers and transfers

Did the SMSF receive rollovers or transfers for the member?

• No – Leave label P blank. Go to label Q.
• Yes – Read on.

Write at label P the total amount of rollovers and transfers received for the member in 2025–26 from within the Australian superannuation system.

These rollovers and transfer amounts are shown on the Rollover benefits and Death benefit rollover statement information that you should have received from the transferring fund. You should have received the Rollover benefits statement or Death benefit rollover statement within 7 days of the member’s previous fund making the rollover or transfer payment.

Examples of inward amounts you include at label P include:

• rollover payments received for the member from other funds where you receive a Rollover benefits statement or Death benefits rollover statement from that fund
• amounts transferred from the member's spouse's super into the member’s account as a result of a contributions splitting arrangement (for more information, see Contributions splitting for members)
• amounts transferred for the member because of a family law obligation (such as a super agreement or a Family Law Court order as a result of a relationship breakdown)
• amounts transferred to the member’s account from their spouse’s account as a result of the spouse’s death (a reversionary pension or entitlement).

Also include at label P, unclaimed superannuation money received from the ATO.

These amounts aren't contributions for the member that receives them into their account.

If the SMSF can receive an inward rollover or transfer amount you must include both of the following at Section A, item 7:

• fund's financial institution account details
• electronic service address alias (ESA).

Don't include transfers from foreign super funds at label P. Show these at labels:

• I Assessable foreign superannuation fund amount
• J Non-assessable foreign superannuation fund amount, or
• M Any other contributions.

If an amount is transferred between members' accounts in your SMSF, for information about how to record the transaction, see Transfers between members within the SMSF.

Outward rollovers and transfers

Did the SMSF make any outward rollovers or transfers from the member's account?

• No – Leave label Q blank. Go to label R1
• Yes – Read on.

Write at label Q the total amount of the outward rollovers and transfers paid from the member's account (other than to a foreign recipient).

The SMSF was required to report the transfers and rollovers on a Rollover benefits statement or Death benefit rollover statement that it gave to the receiving fund when the transfer or rollover occurred. The amount that you write at label Q is the same as the total of the amounts shown at item 13 on the Rollover benefits statement or Death benefits rollover statement, or the total of any rollovers sent via the SMSF's electronic messaging provider. See Register of SMSF messaging providers.

Examples of the outward amounts you write at label Q include:

• rollover payments made for the member to another fund where you provided a Rollover benefits statement or Death benefits rollover statement to the fund
• amounts transferred out of the member’s account, to their spouse's super account, as a result of a contributions splitting arrangement (for more information, see Contributions splitting for members)
• amounts transferred from the member's account because of a family law obligation (such as an order by a Family Law Court)
• amounts transferred from the member’s account to their spouse's super account as a result of the member’s death (a reversionary pension or entitlement).

Transfers between members within the SMSF

If an amount is transferred between 2 members in the same SMSF, include the amount of the transfer at both the following labels:

• Q Outward rollovers and transfers in the record of the member that sends the transfer
• P Inward rollovers and transfers in the record of the member that receives the transfer.

If contributions were made for a member and transferred to another member, they are reported as contributions in the record of the member for whom they were made. Don't report them as if they were contributions of the member that received the transfer.

Lump sum payments

Did the SMSF pay any super lump sums for the member?

• No – Leave label R1 blank. Go to label R2.
• Yes – Read on.

Write at label R1 the total amount of super lump sum benefits paid for the member in 2025–26.

Use Table 11 to work out which code applies to the amount you wrote at label R1. Print the code in the Code box to the right of label R1. If more than one benefit type applies, use the code that describes the largest payment amount.

Don't include at label R1:

• amounts transferred from the member’s account to their spouse's super account as a result of a contributions splitting arrangement (include these at label Q Outward rollovers and transfers)
• amounts transferred from the member's account because of a family law obligation (include these at label Q Outward rollovers and transfers).

A payment made as a result of a full commutation of an income stream is a super lump sum and must be reported at label R1 Lump sum payments.

From 1 July 2017 the payment resulting from a partial commutation of a super income stream is a superannuation lump sum and must be reported at label R1 Lump sum payments.

From 1 July 2017 a member can no longer elect to have a super income stream benefit treated as a super lump sum.

Table 11: Lump sum benefit type codes

Code	Benefit type
A	Lump sum benefit for a member 60 years old or older
B	Lump sum benefit for a member less than 60 years old
C	Death benefit to a dependant
D	Death benefit to a non-dependant
E	Terminal medical condition benefit
F	Other lump sum benefit type (for example, permanent incapacity, severe financial hardship, approved compassionate payment)
G	Release authority payment (for example where an amount is released and issued to the ATO in response to a release authority)

For an explanation of these terms, see Appendix 4: Definitions.

Income stream payments

Did the SMSF pay a super income stream to the member?

• No – Leave label R2 blank. Go to label S.
• Yes – Read on.

Write at label R2 the total amount of super income stream benefits paid to the member in 2025–26.

Use Table 12 to work out which code applies to the amount you wrote at label R2. Print the code in the Code box to the right of label R2. If more than one benefit type applies, use the code that describes the income stream with the largest total payment amount.

Don't include at label R2:

• amounts transferred from the member’s account to their spouse's super account as a result of a contributions splitting arrangement (include these at label Q Outward rollovers and transfers)
• amounts transferred from the member's account because of a family law obligation (include these at label Q Outward rollovers and transfers).

A payment made as a result of a full commutation of an income stream is a super lump sum and must be reported at label R1 Lump sum payments.

From 1 July 2017 the payment resulting from a partial commutation of a super income stream is a super lump sum and must be reported at label R1 Lump sum payments.

From 1 July 2017 a member can no longer elect to have a super income stream benefit treated as a super lump sum.

Table 12: Income stream benefit type codes

Code	Benefit type
M	Income stream benefit for a member 60 years old or older (other than transition to retirement)
N	Income stream benefit for a member under 60 years old (other than transition to retirement)
O	Transition to retirement
P	Death benefit to a dependant where: the member died at 60 years old or older, or the dependant is 60 years old or older
Q	Death benefit to a dependant where: the member died before age 60, and the dependant is under 60 years of age
R	Other income stream type (for example paid due to the member’s temporary incapacity or permanent incapacity)

For an explanation of these terms, see Appendix 4: Definitions.

Complete a Transfer balance account report (TBAR) if an SMSF member had a transfer balance account event such as:

• taking a lump sum payment from their retirement phase account
• starting a new retirement phase superannuation income stream
• commuting and rolling over a retirement phase superannuation income stream to another superannuation fund.

For more information on the events you need to report, see When to lodge a transfer balance account report for SMSFs.

Other transactions

Complete labels S1 to Y in the member information at Section F.

• TRIS count
• Accumulation phase account balance
• Retirement phase account balance – Non CDBIS
• Retirement phase account balance – CDBIS
• Closing account balance
• Value of accumulation account
• Value of retirement account
• Outstanding limited recourse borrowing arrangement amount

TRIS count

Write the total number of accounts that are transition to retirement income stream products that the member has in accumulation phase.

The TRIS is in accumulation phase unless you have reached age 65 or have met another nil cashing restriction condition of release (retirement, permanent incapacity, or terminal medical condition) and notified your SMSF.

Accumulation phase account balance

Write at label S1 the closing account balance of accounts that are in the accumulation phase.

Retirement phase account balance – Non CDBIS

Write at label S2 the closing account balance of accounts that are in the retirement phase and are either:

• market linked capped defined benefit income streams
• retirement income streams that aren't capped defined benefit income streams.

For clarity, income streams included here are the following retirement income streams defined in subsection 307-230(4) ITAA 1997:

• an allocated annuity
• an allocated pension
• an allocated pension – within the meaning of the Retirement Savings Accounts Regulations 1997
• an account-based annuity
• an account-based pension – within the meaning of the Superannuation Industry (Supervision) Regulations 1994
• an account-based pension – within the meaning of the Retirement Savings Accounts Regulations 1997
• a market linked annuity – within the meaning of the Superannuation Industry (Supervision) Regulations 1994
• a market linked pension – within the meaning of the Superannuation Industry (Supervision) Regulations 1994
• a market linked pension – within the meaning of the Retirement Savings Accounts Regulations 1997.

Retirement phase account balance – CDBIS

Write at label S3 the closing account balance that's held in accounts that are in the retirement phase and are capped defined benefit income streams except capped defined benefit income streams that are market linked pensions and annuities. Capped defined benefit income streams are defined in subsection 294-130(1) of the ITAA 1997.

Closing account balance

Write at label S the member’s account balance at 30 June 2026. If the member's closing account balance is zero or a negative amount, write 0 (zero) at label S. To work out the member’s closing account balance at 30 June 2026:

• add  
  • Opening account balance (at 1 July 2025)
  • N Total contributions
  • O Allocated earnings and losses (if the amount is positive)
  • P Inward rollovers and transfers
• and then subtract  
  • O Allocated earnings and losses (if the amount is a loss)
  • Q Outward rollovers and transfers
  • R1 Lump sum payments
  • R2 Income stream payments.

If a member has multiple accounts, combine them so that each member has only one statement in either Section F or Section G.

The amount you write at Closing account balance must also equal the total of labels S1, S2 and S3.

Label X1 Value of Accumulation Account

The accumulation value is the total amount of the superannuation benefits that would become payable if the member voluntarily caused the interest to cease.

You must provide an accumulation value at label X1 for each member if:

• there is a difference between the accumulation value and the S1 Accumulation phase account balance, and
• the difference isn't limited to the value of the administration and exit fees and realisation costs if the member was to voluntarily cease the interest.

The accumulation value is often less than the value at label S1 Accumulation phase account balance as the costs to cease the interest are subtracted from the account balance.

If the above criteria are not met, label X1 is optional.

If you write a value at label X1 greater than nil, we will use it to work out the total superannuation balance for the member and we will no longer use label S1 Accumulation phase account balance for that calculation.

Label X2 Value of Retirement Account

The retirement value is the total amount of the superannuation benefits that would become payable from retirement phase accounts (non-CDBIS only) if the member voluntarily caused the interest to cease.

You must provide a retirement value at label X2 for each member if:

• there is a difference between the retirement value and the value at label S2 Retirement phase account balance – Non CDBIS, and
• the difference isn't limited to the value of the administration and exit fees and realisation costs if the member was to voluntarily cease the interest.

The retirement value is often less than the value at label S2 Retirement phase account balance – Non CDBIS as the costs to cease the interest are subtracted from the account balance.

If the above criteria are not met, label X2 is optional.

If you write a value at label X2 greater than nil, we will use it to work out the total superannuation balance for the member and we will no longer use label S2 for that calculation.

Outstanding limited recourse borrowing arrangement amount

Label Y represents the member’s outstanding limited recourse borrowing arrangement (LRBA) amount at 30 June (if applicable). The information below will help you decide if you need to report an amount at this label.

Does the fund have an LRBA that's a:

• new LRBA entered into on or after 1 July 2018
• refinancing of an existing LRBA and the refinanced amount entered into on or after 1 July 2018 is greater than the outstanding balance of the original LRBA
• refinancing of an existing LRBA to acquire different assets on or after 1 July 2018?

If you answer:

• No – Leave label Y blank.
• Yes – Read on.

Is the lender of the LRBA an associate of the fund?

• Yes – Write at label Y for each member the total value of the outstanding LRBA amount at 30 June 2026 that's attributable to them.
• No – Read on.

Has the member met a condition of release with a nil cashing restriction?

• No – Leave label Y blank.
• Yes – Write at label Y the total value of the outstanding LRBA amount at 30 June 2026 that's attributable to the member that meets a condition of release with a nil cashing restriction.

The total of all the amounts at label Y for all the members shouldn't be greater than the amount you report at Section H – label V1 Borrowings for limited recourse borrowing arrangements.

Don't include the value of the assets held under the LRBA amount here. Include this in Section H.

For more information, see

• Outstanding LRBA amount included in your total superannuation balance 
• Super law requirements for LRBA 
• Law Companion Ruling LCR 2016/12 Superannuation reform: total superannuation balance.

Total superannuation balance

We will use the amount you enter at labels S1, S2, X1 and X2 to calculate the total superannuation balance for each of the members.

From 1 July 2017 the member’s total superannuation balance may impact upon their non-concessional contributions cap and affect other superannuation measures.

For more information, see Total superannuation balance.

Continue to: Section H: Assets and liabilities – items 15 and 16

Return to: Instructions to complete your SMSF annual return 2026

About Section H – item 15

You must complete Section H.

The SMSF's total assets must equal its total liabilities, that is, the amount at label U Total Australian and overseas assets must equal the amount at label Z Total liabilities.

Write the market value of the assets, as shown in the SMSF’s balance sheet (also known as the SMSF’s statement of financial position) at 30 June 2026.

For more information, see Valuation guidelines for self-managed super funds.

15a Australian managed investments

15a Australian managed investments covers the SMSF’s investment in entities that make subsequent investments on behalf of the SMSF.

If the entity in which the SMSF has invested is located or registered in Australia, then the SMSF’s investment in that entity is recorded at labels A, B, C or D. The 4 labels under item 15a Australian managed investments relate to:

• Listed trusts
• Unlisted trusts
• Insurance policy
• Other managed investments

Listed trusts

A listed trust is a trust which has its units traded on an Australian stock exchange, and the unit values are reported as shares.

Did the SMSF own any units in an Australian listed trust?

• No – Leave label A blank. Go to label B.
• Yes – Read on.

Write at label A the value (on 30 June 2026) of listed trust units owned by the SMSF. Don't include at label A the value of units in listed trusts that are held on trust under a limited recourse borrowing arrangement (include the value of these at label J6 Other in item 15b).

Unlisted trusts

Unlisted trusts are trusts that aren't traded or purchased through an Australian stock exchange.

Did the SMSF own any units in an Australian unlisted trust?

• No – Leave label B blank. Go to label C.
• Yes – Read on.

Write at label B the value (on 30 June 2026) of unlisted trust interests held by the SMSF that were registered or located in Australia.

If the SMSF is complying and received a share of net income from the trust that's non-arm's length income, you must also include the distributions in Section B, item 11 – label U2 Net non-arm's length trust distributions.

Don't include at label B the value of units in unlisted trusts that are held on trust under a limited recourse borrowing arrangement (include the value of these at label J6 Other in item 15b).

Insurance policy

Did the SMSF own any life insurance policies that were issued by an organisation registered under the Life Insurance Act 1995?

• No – Leave label C blank. Go to label D.
• Yes – Read on.

Write at label C the value (on 30 June 2026) of life insurance policies owned by the SMSF that were issued by an organisation registered under the Life Insurance Act 1995.

Don't include at label C the value of insurance policies that are held on trust under a limited recourse borrowing arrangement (write the value of these at label J6 Other in item 15b).

Other managed investments

Did the SMSF own any other Australian managed investments?

• No – Leave label D blank. Go to item 15b.
• Yes – Read on.

Write at label D the value (on 30 June 2026) of the SMSF's other investments in entities located or registered in Australia that:

• invest on behalf of the SMSF
• you didn't include at labels A Listed trusts, B Unlisted trusts or C Insurance policy above.

This asset category includes investments with all external investment managers and pooled superannuation trusts (PSTs) located or registered in Australia.

An external investment manager is a person appointed by the trustee of the SMSF in accordance with Section 124 of the Superannuation Industry (Supervision) Act 1993 to make investments on behalf of the SMSF. Investments managed by an external investment manager are called managed funds.

A managed fund that's registered in Australia is an Australian managed investment even if it invests in overseas assets.

Don't include at label D the value of any Australian managed investments that were held on trust under a limited recourse borrowing arrangement (write the value of these at label J6 Other in item 15b).

15b Australian direct investments

15b Australian direct investments covers investments located in Australia where the SMSF directly holds the assets, either in the name of the SMSF or in another legally recognised format.

Cash and term deposits

Did the SMSF own any cash or term deposits?

• No – Leave label E blank. Go to label F.
• Yes – Read on.

Write at label E the value (on 30 June 2026) in Australian currency of all cash accounts and term deposits held by the SMSF with Australian financial institutions (or other similar organisations).

Examples include money market funds and cash management trusts.

Don't include holdings in crypto assets at label E. Include these assets at Other investments label N Crypto-asset. For more information about crypto assets, see Crypto asset investments.

Debt securities

Debt securities:

• are typically financial securities which establish ownership and represent borrowings that must be repaid by the issuer
• include negotiable instruments such as bonds, bills of exchange, promissory notes and share certificates which are traded in financial markets
• may consist of a combination of 2 or more financial instruments. These debt securities are called hybrid securities. They can combine bonds or notes, swaps, forward or futures contracts and options.

Did the SMSF own any debt securities?

• No – Leave label F blank. Go to label G.
• Yes – Read on.

Write at label F the value (on 30 June 2026) of debt securities or hybrid securities, held by the SMSF, that are traded or available in Australia.

Don't include at label F the value of debt securities held on trust under a limited recourse borrowing arrangement. Include the value of these securities at label J6 Other in item 15b.

Loans

Did the SMSF have any Australian loans (where the SMSF is the lender)?

• No – Leave label G blank. Go to label H.
• Yes – Read on.

Write at label G the total value (on 30 June 2026) of loans where both:

• the SMSF is the lender
• the SMSF entered into or finalised the loan in Australia.

Listed shares

Did the SMSF own any public shares and equities that are traded on Australian stock exchanges?

• No – Leave label H blank. Go to label I.
• Yes – Read on.

Write at label H the value (on 30 June 2026) of public shares and equities held by the SMSF that are traded on Australian stock exchanges. These include shares, equities and similar financial contracts that are traded on Australian stock exchanges.

Don't include at label H:

• debt securities (include these at label F Debt securities)
• investments in listed trusts (include these at label A Listed trusts)
• listed shares held on trust under a limited recourse borrowing arrangement (include these at label J4 Australian shares).

Unlisted shares

Did the SMSF own any unlisted shares, equities or similar financial contracts that aren't traded on Australian stock exchanges?

• No – Leave label I blank. Go to label J1 to J7 and J Limited recourse borrowing arrangements.
• Yes – Read on.

Write at label I the value (on 30 June 2026) of shares, equities and similar financial contracts held by the SMSF that aren't listed on Australian stock exchanges.

Don't include at label I:

• investments in unlisted trusts here (include these at label B Unlisted trusts in item 15a)
• unlisted shares that are held on trust under a limited recourse borrowing arrangement (include the value of these at label J4 Australian shares in item 15b).

If the SMSF is complying and non-arm's length dividends were paid to the SMSF from a private company include them at Section B, item 11 – label U1 Net non-arm's length private company dividends.

Limited recourse borrowing arrangements

Did the SMSF have a beneficial interest in any assets that were held on trust as security under a limited recourse borrowing arrangement?

• No – Leave labels J1 to J7 and J blank. Go to label K.
• Yes – Read on.

Write at labels J1 to J6 the value (on 30 June 2026) of assets beneficially held by the SMSF in a trust as security for a borrowing of money under a limited recourse borrowing arrangement, including instalment warrants.

• The amounts you write at labels J1 to J6 are the values of the assets held on trust under limited recourse borrowing arrangements and not the amounts borrowed or the amount of outstanding borrowings.
• Write the value of the outstanding borrowings under the limited recourse borrowing arrangements at item 16 Liabilities – label V1.
• Don't include the amounts you write at labels J1 to J6 at any other asset item in Section H. For example, if the SMSF holds a beneficial interest in overseas shares on trust under a limited recourse borrowing arrangement, record the value of the shares at label J5 and not at item 15d – label P Overseas shares.

SMSFs are prohibited from borrowing to invest except in certain limited circumstances. For more information, see Limited recourse borrowing arrangements.

Australian residential real property

Did the SMSF have a beneficial interest in any Australian residential real property that was held on trust as security under a limited recourse borrowing arrangement?

• No – Leave label J1 blank.
• Yes – Read on.

Write at label J1 the value (on 30 June 2026) of the SMSF's beneficial interest in residential real property that's both:

• located in Australia
• held in a trust as security for a borrowing under a limited recourse borrowing arrangement.

Australian non-residential real property

Did the SMSF have a beneficial interest in any Australian non-residential real property that was held on trust as security under a limited recourse borrowing arrangement?

• No – Leave label J2 blank.
• Yes – Read on.

Write at label J2 the value (on 30 June 2026) of the SMSF's beneficial interest in non-residential real property that's both:

• located in Australia
• held in a trust as security for a borrowing under a limited recourse borrowing arrangement.

Overseas real property

Did the SMSF have a beneficial interest in any overseas real property that was held on trust as security under a limited recourse borrowing arrangement?

• No – Leave label J3 blank.
• Yes – Read on. 

Write at label J3 the value (on 30 June 2026) of the SMSF's beneficial interest in residential and non-residential real property that's both:

• located overseas
• held in a trust as security for a borrowing under a limited recourse borrowing arrangement.

Australian shares

Did the SMSF have a beneficial interest in any Australian shares that were held on trust as security under a limited recourse borrowing arrangement?

• No – Leave label J4 blank. Go to label J5.
• Yes – Read on.

Write at label J4 the value (on 30 June 2026) of the SMSF's beneficial interest in public shares, unlisted shares, equities and similar financial contracts that are held in a trust as security for a borrowing under a limited recourse borrowing arrangement.

Don't include:

• derivatives (include these at label O Other assets)
• a beneficial interest in debt securities that's held under a limited recourse borrowing arrangement (include these at label J6 Other).

Overseas shares

Did the SMSF have a beneficial interest in any overseas shares that were held on trust as security under a limited recourse borrowing arrangement?

• No – Leave label J5 blank. Go to label J6.
• Yes – Read on.

Write at label J5 the value (on 30 June 2026) of the SMSF's beneficial interest in public and private shares, equities and similar financial contracts that are both:

• traded on overseas stock exchanges
• held in a trust as security for a borrowing under a limited recourse borrowing arrangement.

Don't include:

• derivatives (include these at label O Other assets)
• a beneficial interest in debt securities that's held under a limited recourse borrowing arrangement (include these at label J6 Other).

Other

Did the SMSF have a beneficial interest in any other assets that were held on trust as security under a limited recourse borrowing arrangement?

• No – Leave label J6 blank. Go to label J7.
• Yes – Read on.

Write at label J6 the value (on 30 June 2026) of the SMSF's beneficial interest in other assets that:

• are held in a trust as security for a borrowing under a limited recourse borrowing arrangement
• don't fall within any of the categories in labels J1 to J5.

Property count

Did the SMSF have any properties held in trust as security under a limited recourse borrowing arrangement at labels J1, J2, or J3?

• No – Leave label J7 blank. Go to label J.
• Yes – Read on.

Write at label J7 the total number of real properties that are a single acquirable asset the fund has an interest in that has been reported at labels J1, J2 and J3.

• Each distinct property that the SMSF has an interest in should be reported. A fractional interest in a property is to be reported as one property.
• Where the SMSF has interests in 1,000 or more properties, report 999.

Limited recourse borrowing arrangements

Write at label J the total of labels J1 to J6.

If you report an amount here, you must also complete:

• labels A and B at item 15f Limited recourse borrowing arrangements
• label V1 Borrowings for limited recourse borrowing arrangements at item 16 Liabilities.

Non-residential real property

Did the SMSF own any Australian non-residential real property?

• No – Leave label K blank. Go to label L.
• Yes – Read on.

Write at label K the value (on 30 June 2026) of the SMSF's non-residential real property that is located in Australia.

Don't include at label K non-residential real property that's held on trust under a limited recourse borrowing arrangement (write the value of these at label J2).

Residential real property

Did the SMSF own any Australian residential real property?

• No – Leave label L blank. Go to label M.
• Yes – Read on.

Write at label L the value (on 30 June 2026) of the SMSF's residential real property that's located in Australia.

Don't include at label L residential real property that's held on trust under a limited recourse borrowing arrangement (write the value of these at label J1).

Collectables and personal use assets

Did the SMSF own any collectables or personal use assets?

• No – Leave label M blank. Go to label O.
• Yes – Read on.

Write at label M the total value (on 30 June 2026) of the SMSF's collectable and personal use asset investments.

Collectable and personal use asset include:

• artwork
• jewellery
• antiques
• artefacts
• coins, medallions and bank notes
• postage stamps and first day covers
• rare folios, manuscripts and books
• memorabilia
• wine and spirits
• motor vehicles
• recreational boats
• memberships of sporting and social clubs.

Artwork includes a painting, sculpture, drawing, engraving or photograph or a reproduction of one of these things and any property of a similar description or use.

Coins and bank notes are collectables if their value exceeds their face value.

Spirits can include (but isn't limited to) whiskey, gin, vodka, tequila, brandy and rum where their purchase is considered an investment.

Don't include collectables and personal use assets that are held on trust under a limited recourse borrowing arrangement at label M (write the value of these at label J6).

Other assets

Did the SMSF own any other assets that are located in Australia?

• No – Leave label O blank. Go to label 15c.
• Yes – Read on.

Write at label O the value (on 30 June 2026) of the SMSF's other assets that are both:

• located in Australia
• weren't included at labels A to M.

Include the value of derivatives at label O.

Don't include instalment warrants at label O. Include them at labels J1 to J6.

15c Other investments

Did the SMSF own any crypto asset as an investment?

• No – Leave label N blank. Go to item 15d.
• Yes – Read on.

Write at label N the value (on 30 June 2026) of the SMSF's crypto asset investment.

For more information, see SMSF investing.

15d Overseas direct investments

15d Overseas direct investments covers the SMSF's direct investments that are located outside Australia. It includes overseas direct investments where the entities make subsequent investments in Australian markets. If the SMSF has an investment which is in an entity that isn't an Australian-regulated entity, include the investment at labels P, Q, R, S or T.

If the SMSF has investments in Australian-regulated entities that make subsequent investments on behalf of the SMSF, don't include the investments here at item 15d (include them at labels A to O in items 15a and 15b).

The labels in 15d Overseas direct investments are:

• Overseas shares
• Overseas non-residential real property
• Overseas residential real property
• Overseas managed investments
• Other overseas assets
• Total Australian and overseas assets

Overseas shares

Did the SMSF own any public and private shares, equities and similar financial contracts that are traded on an overseas stock exchange?

• No – Leave label P blank. Go to label Q.
• Yes – Read on.

Write at label P the value (on 30 June 2026) of the SMSF's public and private shares, equities and similar financial contracts that are traded on an overseas stock exchange.

Don't include:

• debt securities (include these at label T Other overseas assets)
• investments in listed or unlisted trusts (include these at label S Overseas managed investments)
• overseas shares that are held on trust under a limited recourse borrowing arrangement (include these at item 15b – label J5).

Overseas non-residential real property

Did the SMSF own any non-residential real property that's located outside Australia?

• No – Leave label Q blank. Go to label R.
• Yes – Read on.

Write at label Q the value (on 30 June 2026) of the SMSF's non-residential real property that's located outside Australia.

Don't include at label Q the value of overseas non-residential real property that's held on trust under a limited recourse borrowing arrangement (include the value of these properties at item 15b – label J3).

Overseas residential real property

Did the SMSF own any residential real property that's located outside Australia?

• No – Leave label R blank. Go to label S.
• Yes – Read on.

Write at label R the value (on 30 June 2026) of the SMSF's residential real property that's located outside Australia.

Don't include at label R the value of overseas residential real property that's held on trust under a limited recourse borrowing arrangement (include the value of these properties at item 15b – label J3).

Overseas managed investments

Did the SMSF own any managed investments with investment managers located outside Australia?

• No – Leave label S blank. Go to label T.
• Yes – Read on.

Write at label S the value (on 30 June 2026) of the SMSF's managed investments with investment managers located outside Australia.

This category includes investments with all external investment managers located overseas. An external investment manager is someone appointed by the trustee of the SMSF in accordance with Section 124 of the Superannuation Industry (Supervision) Act 1993 to make investments on behalf of the SMSF. Investments managed by an external investment manager are often called managed funds.

Don't include at label S:

• investments in a managed fund that's registered or located in Australia where the managed fund invests in overseas assets (include their value at item 15a – label D Other managed investments)
• overseas managed investments that are held on trust under a limited recourse borrowing arrangement (include their value at item 15b – label J6).

Other overseas assets

Did the SMSF own any other assets located outside Australia?

• No – Leave label T blank. Go to label U.
• Yes – Read on.

Write at label T the value (on 30 June 2026) of the SMSF's other assets that are located outside Australia and couldn't be included at labels P to S.

Don't include at label T other overseas assets that are held on trust under a limited recourse borrowing arrangement at label T (include the value of these assets at item 15b – label J6).

Total Australian and overseas assets

Write at label U the total of labels A to T (including label J but not including labels J1 to J6).

If the total of labels A to T is negative, write 0 (zero) at label U.

If the total of labels A to T is zero (that is, the SMSF has no assets) write 0 (zero) at label U.

An SMSF that has no assets must be wound up. If the SMSF has no assets it must have answered Yes in Section A at item 9 Was the fund wound up during the income year?

15e In-house assets

Did the SMSF hold any in-house assets on 30 June 2026?

• No – Print X in the No box at label A. Go to item 15f Limited recourse borrowing arrangements.
• Yes – Read on.

Print X in the Yes box at label A.

Write at label A the total value of the in-house assets on 30 June 2026.

Don't include at label A any related party investments that aren't in-house assets.

Make sure that any amount you include at label A are also included at labels A to T in items 15a, 15b, 15c and 15d.

Identifying in-house assets

Generally, an in-house asset of an SMSF is an asset that's:

• a loan to a related party of the SMSF
• an investment in a related party of the SMSF
• an investment in a related trust of the SMSF
• subject to a lease or lease arrangement between the trustee of the SMSF and a related party of the SMSF.

Some in-house asset exceptions do exist, such as a lease or lease agreement, between the SMSF and a related party of the SMSF involving business real property. There is also a limited exception for certain investments in related non-geared unit trusts and companies.

For more information on what is an in-house asset, see:

• Part 8 of the Superannuation Industry (Supervision) Act 1993
• SMSFR 2009/4 Self-Managed Superannuation Funds: the meaning of ‘asset’, ‘loan’, ‘investment in’, ‘lease’ and ‘lease arrangement’ in the definition of an ‘in-house asset’ in the Superannuation Industry (Supervision) Act 1993.

15f Limited recourse borrowing arrangements

SMSFs that had a Limited recourse borrowing arrangement (LRBA) must complete labels:

• A If the fund had an LRBA, were the LRBA borrowings from a licensed financial institution?
• B Did members or related parties of the fund use personal guarantees or other security for the LRBA?
• J Limited recourse borrowing arrangements at item 15b
• V1 Borrowings for limited recourse borrowing arrangements at item 16.

SMSFs are prohibited from borrowing to invest except in certain limited circumstances. For more information, see Limited recourse borrowing arrangements.

If the limited recourse borrowing arrangements is zero or blank at labels J1, J2, J3, J4, J5, J6 and J7, don't mark any checkbox at item 15f – labels A or B. This will avoid processing delays.

Were any LRBA borrowings from a licensed financial institution?

If the fund had an LRBA, were the LRBA borrowings from a licensed financial institution?

• No – Print X in the No box. Go to label B.
• Yes – Print X in the Yes box. Go to label  B.

A licensed financial institution includes a bank or authorised deposit-taking institutionExternal Link. Examples of licensed financial institutions include:

• Australian-owned banks
• foreign banks (branches or subsidiaries)
• credit unions
• building societies
• authorised non-operating holding companies
• finance companies.

Answer No if the fund borrowed money under the LRBA from:

• a related party of the fund
• a non-licensed financial institution.

Also answer No if the fund holds more than one LRBA, and the money to acquire at least one (or part) of an asset has been borrowed from a source other than a licensed financial institution.

Use of personal guarantees or other security for the LRBA

Did members or related parties of the fund use personal guarantees or other security for the LRBA?

• No – Print X in the No box. Go to item – 16 Liabilities.
• Yes – Print X in the Yes box. Go to item – 16 Liabilities.

Answer Yes if:

• a member of the fund or a related party of the fund has provided a personal guarantee or security for the LRBA
• the fund holds more than one LRBA, and a member or related party has used a personal guarantee or other security for at least one of the LRBAs.

16 Liabilities

The labels in item 16 Liabilities are:

• Borrowings
• Total member closing account balances
• Reserve accounts
• Other liabilities
• Total liabilities.

Borrowings

Did the SMSF have any outstanding borrowings (where the SMSF is the borrower)?

• No – Leave labels V1, V2, V3 and V blank. Go to label W.
• Yes – Read on.

Write at labels V1 to V3 the total value of each type of outstanding borrowing by the SMSF (including accrued interest) on 30 June 2026.

SMSFs are prohibited from borrowing to invest except in certain limited circumstances. For more information, see Limited recourse borrowing arrangements.

Borrowings for limited recourse borrowing arrangements

Did the SMSF have any outstanding borrowings held under limited recourse borrowing arrangements?

• No – Leave label V1 blank. Go to label V2.
• Yes – Read on.

Write at label V1 the value of outstanding borrowings held under all limited recourse borrowing arrangements at 30 June 2026.

Don't include the value of the assets held under the limited recourse borrowing arrangement here. The values of the assets held on trust under limited recourse borrowing arrangements are to be included at labels J1 to J6 and the total at item 15b – label J.

If the SMSF reports borrowings for an LRBA at label V1, it must also report at labels:

• J Limited recourse borrowing arrangements at item 15b
• A and B at item 15f.

Permissible temporary borrowings

Did the SMSF have any permissible temporary borrowings?

• No – Leave label V2 blank. Go to label V3.
• Yes – Read on.

Write at label V2 the value (on 30 June 2026) of any permissible temporary borrowings held by the SMSF.

Permissible temporary borrowings are those borrowings allowed under subsections 67(2), (2A) and (3) of the Superannuation Industry (Supervision) Act 1993, and include:

• borrowing money for a maximum of 90 days to meet benefit payments due and required to be made to members, by law or by the governing rulesExternal Link, or to meet an outstanding superannuation surcharge liability (where, in either case, the SMSF wouldn't be able to make such a payment without the borrowing), provided the total borrowing doesn't exceed 10% of the value of the SMSF's total assets
• borrowing money for a maximum of 7 days to cover the settlement of certain securities transactions (where, at the time the relevant investment decision was made, it was likely that the borrowing wouldn't be required), provided the total borrowing doesn't exceed 10% of the value of the SMSF's total assets.

Other borrowings

Did the SMSF have any other outstanding borrowings?

• No – Leave label V3 blank. Go to label V.
• Yes – Read on.

Write at label V3 the value (on 30 June 2026) of all other borrowing amounts.

Borrowings

Write at label V the total of labels V1, V2 and V3.

Total member closing account balances

Was the SMSF wound up during 2025–26?

• No – Write at label W the total value of all member account balances on 30 June 2026.
  
  The amount at label W must equal the total of all the label S Closing account balance amounts in Sections F and G.
• Yes – Leave label W blank.
  
  You must have answered Yes in Section A at item 9 Was the fund wound up during the income year?
  
  Go to label X.

If you have used a contribution reserve strategy for concessional contributions as described in Taxation Determination TD 2013/22, then ensure that the amount you work out and write at label W includes the contributions that were received in 2025–26, even where they weren't allocated to a member's account until the following financial year.

Reserve accounts

Did the SMSF have any assets not allocated to members on 30 June 2026?

• No – Leave label X blank. Go to label Y.
• Yes – Read on.

Write at label X the total value of assets not allocated to members on 30 June 2026.

The use of reserve accounts is strictly limited for SMSFs. For more information see, SMSF Regulator's Bulletin 2018/1 The use of reserves by self-managed superannuation funds.

Other liabilities

Did the SMSF have other liabilities?

• No – Leave label Y blank. Go to label Z.
• Yes – Read on.

Write at label Y the total value (on 30 June 2026) of liabilities that you couldn't include in labels:

• V Borrowings
• W Total member closing account balances
• X Reserve accounts.

Total liabilities

Work out the SMSF's total liabilities at 30 June 2026. Add up all the liabilities at labels V to Y. Write the total at label Z.

If the total of labels V to Y is negative, write 0 (zero) at label Z.

If the SMSF was wound up during 2025–26 (that is, it has no liabilities), write 0 (zero) at label Z.

Label Z Total liabilities must equal label U Total Australian and overseas assets in item 15d.

Continue to: Section I: Taxation of financial arrangements – item 17

Return to: Instructions to complete your SMSF annual return 2026