Self-managed super funds are subject to income tax in Australia like investments or other funds. However, SMSF gets relief as long as it complies with the rules and regulations set by the Australian Tax Administration (ATO).
According to the ATO, the estimated revenue from compliant SMSFs is usually taxed at 15%, while for non-compliant funds the tax rate is 45%. To find more about the SMSF tax return visit https://www.rwkaccountancy.com.au/smsf/.
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The ATO states that the most common types of budgeted revenue for compliance with SMSF regulations are:
• Applicable contributions
• Interest, dividends, and rent
• Net capital gains.
Independent SMSF audit
ATO requires that each self-managed super fund be audited annually by an independent auditor approved by ATO. The main responsibility of the SMSF auditors is to inspect the IMF's annual accounts and assess the IMF's compliance with laws and regulations on pension benefits in general and SMSF in particular, including the tax on the SMSF.
The bankruptcy administrator appoints auditors, who are then required to submit reports to the bankruptcy administrator. The auditor's report must be presented to the Trustee the day before the IMF is asked to submit its annual SMSF declaration.
Due to the complexity of SMSFs taxes, working with experienced retirement accountants and SMSF auditors will be of great help. This greatly simplifies the administration of SMSF and ensures ongoing compliance with a super fund that you manage yourself.