Understanding tax and SMSFs

SMSFs are subject to income tax but receive concessional treatment if they are complying funds. A complying SMSF’s taxable income is generally taxed at a rate of 15%, compared with 45% for a non-complying fund.
The most common types of assessable income for complying SMSFs are:

However, certain types of SMSF income are taxed at different rates:

A complying SMSF is entitled to claim deductions for expenses, such as the supervisory levy and auditor fees, that are incurred in gaining or producing assessable income.
SMSFs must register for GST if they have a GST turnover of $75,000 or more. Most SMSFs don’t have this much GST turnover and so don’t need to register.

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Thompsons Australia Newsletters and articles are distributed by professional tax practitioners to provide information of general interest to our clients. The content of this newsletter does not constitute specific advice. Readers are encouraged to consult their tax adviser for advice on specific matters.

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