Did the SMSF incur auditor's fees?
No |
Write 0 at H1. Go to I1 and I2. |
Yes |
Read on. |
Write at H1 and H2, as required, the amount of auditor fees that the SMSF incurred in 2017–18.
Deductible SMSF auditor fee
Write at H1 the deductible amount for SMSF auditor fees.
Do not include at H1 any part of the SMSF's auditor fees that relate to earning:
- 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 How are expenses treated when an SMSF has ECPI? before you claim a deduction for the SMSF's auditor fees.
Non-deductible SMSF auditor fees
Write at H2 the amount for auditor fees that is not deductible. This includes auditor fees to the extent the fees are incurred for the purposes of earning exempt income, such as exempt current pension income.
Example 'SMSF with no ECPI': SMSF auditor fee
SMSF H has no exempt current pension income, foreign income or non-arm's-length income.
In 2017–18, SMSF H paid an auditor $1,000 to audit its 2016–17 accounts.
SMSF H reports:
H1 Deductible SMSF auditor fee $1,000
H2 Non-deductible SMSF auditor fee (Blank)
End of example
Example SMSF with ECPI: SMSF auditor fee
SMSF HH pays retirement phase superannuation income stream benefits to one of its three members and some of its income is exempt from income tax under the exempt current pension income rules.
In 2017–18, SMSF HH paid an auditor $1,000 to audit its 2016–17 accounts.
Using the rules described at How are expenses treated when an SMSF has ECPI? SMSF HH determines that $250 of the audit fee relates to earning its exempt current pension income.
SMSF HH reports:
H1 Deductible SMSF auditor fee $750
H2 Non-deductible SMSF auditor fee $250
End of example