Expenses & Your Self-Managed Super Fund
Retirement is pretty much every Aussie’s end goal, but it can also be a daunting idea because of the lack of regular income. Luckily the government has implemented measures to encourage people to plan for their eventual retirement. The biggest way they have done this is through compulsory contributions to retirement savings into Superannuation over an individual’s working life.
While plenty of people chose to go with specific Super Funds, you are also able to self-manage if you would prefer. Self-Managed Super Funds can be great for many reasons, such as flexibility, control, effective tax management, accountability and a wider range of investment choices.
Self-Managed Super Funds can be tempting, but the claiming of expenses on them can be tricky business. There are so many things you need to ask yourself. What is an allowable expense of the fund? What is actually tax deductible?
Any costs or expenses must be allowable under the Superannuation law & fund deed, and Self-Managed Super Fund operations and investment strategy.
The biggest question you will need to ask yourself is – do the costs and expenses relate to the provision of retirement benefits?
All Self-Managed Super Fund expenses will need to be recorded and reported in your fund’s financial statements. Any fund expenses that are paid by members where no claim for reimbursement is made will also need to be recorded as an expense in the fund.
Typical expenses that can be claimed as tax deductions in a Self-Managed Super Fund would generally include:
Operating expenses
Include items like accounting, taxation, audit and actuarial fees.
Statutory fees
Include The annual Australian Taxation Office supervisory levy as well as the Australian Securities and Investments Commission’s annual fees.
Investment Expenses
These would include items such as ongoing management fees, bank fees, interest for limited resource borrowings, property insurance and other rental property expenses. You can also potentially claim financial advice when it relates to a mix of investments from the Self-Managed Super Fund and is not a new plan or strategy. You will need to keep in mind that other investment costs such as brokerage fees are not tax deductible (but instead for part of the asset cost base for capital gains tax purposes).
Legal expenses
These kinds of expenses can be a bit more tricky to navigate. Legal advice may be deductible or capital in nature, depending on the type of advice and services provided.
Trust Deed Updates
These can be made tax deductible only if the update is to ensure that the Self-Managed Super Fund complies with the changes to the superannuation legislation. Other changes will be considered a capital cost.
Member insurance
Certain member insurances can be paid by the Self-Managed Super Fund and then claimed as a tax deduction. These include life and disability cover.
Extra investments
People will often try to claim extra investment expenses such as laptops, subscriptions, and seminars. Be careful with these as the expenses can only be claimed if they directly relate to the running of your Self-Managed Super Fund. Unlike personal tax claims, you can’t have partial personal use and part tax deductible claims in the Self-Managed Super Fund.
Try to avoid falling into the trap of trying to claim everything you can as an expense for your Self-Managed Super Fund because the funds are audited. Ask yourself these questions
- Does this expense relate to the operation of my Self-Managed Super Fund?
- Is it TRULY an expense of my Self-Managed Super Fund?
- Is it for the sole purpose of my Self-Managed Super Fund?
- Is the expense tax deductible or a capital cost?
If you are in doubt, please feel free to contact us. We would love to help!
Phone: 08 6336 6200
Email: info@ascentwa.com.au
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A new way to claim work-related expenses is coming for the 2027 tax return — but there is an important catch. From 1 July 2026, eligible taxpayers can claim a standard deduction of up to $1,000 for certain work-related expenses, without having to substantiate each expense individually. Sounds simple enough. But before you assume you can claim $1,000 on top of everything else, there are a few things you need to know. The $1,000 Is the Maximum The new standard deduction is capped at $1,000. It is designed to cover certain common work-related expenses, such as work-related phone and internet, home office expenses, stationery and some travel expenses. You can't claim the $1,000 and then claim those same expenses again separately. If you have actual work-related expenses of more than $1,000, you can continue to claim your actual expenses under the existing rules, provided you meet the requirements and have the records to support them. Do I Still Need to Keep My Receipts? Yes: and this is where it is worth being organised. If you use the standard deduction, you don't need to substantiate the individual expenses covered by it. But if you think your actual work-related expenses could be more than $1,000, keeping your receipts and records throughout the year will allow you to claim your actual expenses instead. There are also some deductions that aren't covered by the standard deduction and can still be claimed separately if you are eligible. It's for Your 2027 Tax Return The new deduction applies from the 2026–27 financial year, so you won't use it for the tax return you are preparing now. It will first apply to your 2027 tax return, lodged from July 2027. Is the $1,000 a $1,000 Tax Refund? No. The $1,000 is a deduction from your taxable income. It doesn't mean you'll receive an extra $1,000 back from the ATO. The value of the deduction will depend on your individual tax circumstances. What Should You Do Now? The best thing you can do is keep track of your work-related expenses throughout the 2026–27 financial year. When it comes time to prepare your 2027 tax return, we can look at your circumstances and determine whether the standard deduction or claiming your actual expenses is likely to give you the better outcome. At Ascent Accountants, we can help you make sense of the new rules and make sure you're claiming the deductions you're entitled to: without claiming the same expense twice!
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