Part A qualification
Instructions for Section A: SMSF auditor Part A have been updated to help clarify the requirements for the fund. This question can also now be answered as 'No' if the audit report was qualified only in relation to insufficient audit evidence under Auditing Standard ASA 510 Initial Audit Engagements – Opening Balance.
Property count
A new label J7 Property Count has been added to Section H: Assets and liabilities at 15b. If your SMSF holds investments in real property that was held in trust as a security under a limited recourse borrowing arrangement, this information must be reported at J7 Property count.
G1 Death benefit increase
Label G1 Death benefit increase at Section C: Deductions and non-deductible expenses has been removed.
If a fund member died on or before 30 June 2017, the fund must have paid the benefit before 1 July 2019 to be eligible to claim a deduction.
From 1 July 2019, the deduction is no longer available.
Non-arm's length expenses (NALE)
The Treasury Laws Amendment (Support for Small Business and Charities and other Measures) Act 2024External Link amends the rules for NALE for superannuation entities.
Under the amendments, from 1 July 2018:
- For small complying funds, the amount of non-arm's length income arising from a non-arm's length general expense will be twice the difference between the expense that the entity did incur (including nil expenditure) and the amount that might have been expected to be incurred. This is the 'Twice the difference approach'.
- Large APRA regulated funds, exempt public sector superannuation funds, pooled superannuation trusts (PSTs) and approved deposit funds (ADFs), will be exempt from the from the non-arm's length income rules arising from NALE for both non-arm's length general and specific expenses. However, they will still be subject to the remaining non-arm's length income rules for income derived on a non-arm's length basis.
For all superannuation funds, exempt the application of the NALE rules for expenditure incurred or expected to have incurred before 1 July 2018.
For more information, on these recent amendments and the transitional compliance approach, see Non-arm's length income.
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