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H1 and H2 SMSF auditor fee

Did the SMSF incur auditor's fees?

Last updated 5 August 2024

Did the SMSF incur auditor's fees?

No

Write 0 (zero) 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 2020–21.

H1 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:

If the SMSF pays retirement phase superannuation income stream benefits to a member, refer to How expenses are treated when an SMSF has ECPI before you claim a deduction for the SMSF's auditor fees.

H2 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 2019–20, SMSF H paid an auditor $1,000 to audit its 2018–19 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 2019–20, SMSF HH paid an auditor $1,000 to audit its 2018–19 accounts.

Using the rules described at How expenses are 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

Continue to: I1 and I2 Investment expenses

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