The following expenses are generally deductible to a super fund, except where they are capital expenses:
- accounting and audit fees, and actuarial costs incurred in complying with superannuation laws
- legal expenses not capital in nature
- ongoing management fees or retainers incurred in ‘servicing’ an investment portfolio
- operating expenses
- trust deed amendments not capital in nature
- fees for trustee services not capital in nature
Expenses are not deductible where they are incurred in gaining non-assessable incomeFootnote3. If incurred partly in gaining assessable income and partly in gaining non-assessable income, these expenses must be apportioned.
Specific deductions
A deduction is available to a complying super fund that pays:
- tax-related expenses such as accounting, audit fees and actuarial costs that relate to tax matters except when they are capital expenses
- the super supervisory levy as a tax-related expense
- death, total and permanent disability, terminal illness and income protection insurance premiums. The deduction is determined according to proportions specified under super law
- an anti-detriment payment where the dependantsFootnote4 will receive some benefit. This deduction will no longer be available for lump sum death benefits where the member died on or after 1 July 2017
- the financial assistance levy that is payable by APRA-regulated super funds and is fully deductible to a complying or non-complying super fund.
A deduction may be available for:
- certain business-related capital expenditure (or blackhole expenditure) over a period of five yearsFootnote5.
- the cost of depreciating capital assetsFootnote6 held by the trustee of a super fund and used in gaining or producing the fund's assessable income.
See also:
- TR 93/17 Income tax: income tax deductions available to superannuation funds
- Capital allowances
- Expenses you can claim
When the trustee can claim
As a general rule, the trustee can claim the super fund’s expenses in the year the trustee incurs them. However, the costs of capital items (such as plant and equipment) and business-related capital expenditure may be claimed over a number of years.
See also:
- TR 97/7 Income tax: section 8–1 – meaning of 'incurred' – timing of deductions
- Capital allowances
- Business-related capital expenditure
Keeping records
Funds must keep records, in English – in writing or electronically. The records must be in a form that we can access and understand. Generally, funds must keep all relevant records for at least five years. This period may be longer in certain circumstances.
See also:
- Record keeping requirements
- TR 96/7 Income tax: record keeping – section 262A – general principles
- TR 2005/9 Income tax: record keeping – electronic records
Find out about:
- Footnote 3
- Non-assessable includes exempt income and non-assessable non-exempt income
- Footnote 4
- Includes a spouse, former spouse or child of the deceased member
- Footnote 5
- Section 40–880 of the Income Tax Assessment Act 1997
- Footnote 6
- Subdivision 40–B of the Income Tax Assessment Act 1997