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SMSF Super levy Cost and Guide

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  When you set up an  SMSF  several costs are involved in setting up the fund and ongoing operations  of the fund. Some of them are one time payment like  SMSF Set Up  and other are occurred every year  like  accounting fee , audit fee etc. One of them is the ATO supervisory levy which is paid every year  by the fund from inception till wind up. How much does Super levy cost? Currently ATO super levy is $259 and is paid as part of tax payment for the annual return. Since 2014  financial year super levy remained at $259 and for the existing funds it was adjusted to $259 in 2013  and 2014 financial year  tax return  lodgement where levy for 2013 was $191 but $321 was charged  and for 2014 it was $259 but $388 was charged to make it advance payment for one year for existing  funds. For newly funds with first time lodgement of return from 2014 financial year Super levy was  charged $518 which includes $259 advance payment to next year Super levy. If the fund is set up  part way through the
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SMSF expenses and are they tax deductible?

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  Expenses incurred in running the  self-managed super fund  are generally tax deductible but there are some expenses that are not tax deductible. Expenses can only be claimed if they are according to the Superannuation and tax laws. Like any other entity in Australia expenses must relate to earning assessable income of the fund.  SMSFs  are taxed at concessional rate of 15% in Australia and all fund earnings, assessable contributions (employer or member) are taxed at this rate except certain conditions for example for non-complying fund. Some expenses that are capital in nature are not tax-deductible example being cost to purchase asset. How does the  SMSF  expenses deduction work if the fund is in accumulation phase or retirement phase? If the fund is in the accumulation phase and expenses incurred in earning taxable income are tax deductible. On the other side if the fund is in the pension phase and income generated by the fund is non-taxable then expenses occurred in earning that i
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SMSF Tax Return and Why you should lodge it on time?

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  SMSF Tax Return SMSF Tax Return  (NAT 71226) covers reporting of superannuation income, deductions, tax outcome, member contributions and payment of super levy to tax office. It is more than an income tax return and has eleven sections. All  SMSFs must lodge tax return  every year irrespective of income or if it is in 100% pension phase. It can be lodged through software or paper form. To help to complete you superannuation annual return you can use Self Managed Superannuation fund annual return instructions (NAT 71606). Why you should lodge SMSF tax return on time? 1.    To avoid penalties  –  Setting up an SMSF  gives more control, flexibility to invest and investment decisions. At the same time Superannuation laws provides responsibility to trustee to follow the super industry rules and one of the them is the reporting requirements. Trustees need to lodge superannuation or  SMSF Tax Return  every year on time and provide activity during the year details to the tax department in th
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What is an ESA (electronic service address)?

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  An electronic service address (ESA) is an alias that represents the uniform resource locator or internet protocol address of a messaging provider.   How to get an electronic service address  (ESA)? Trustees can get the electronic service address (ESA) directly from the messaging provider like Australia post, Westpac, Wrkr. Other option is to ask your  SMSF Accountant  or tax agent to get this from the software which could be part of the annual software subscription at no extra cost. Examples being BGL Simple Fund 360, Class Super   Is electronic service address (ESA) unique to my SMSF? No. ESA is not unique to an SMSF. Other SMSFs can have the same ESA.   How much does it cost to get an electronic service address (ESA)? Depending on the ESA messaging service provide this can vary but if your accountant or  tax agent  get this from the software provider they use, it could be free as part of the annual software fee.   Do I need to provide ESA to my employer? Yes, to get contributions t
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What Does an SMSF Accountant Do?

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  Have you ever wondered what an  SMSF accountant  does? They handle all the accounting, administrative and financial reporting tasks required to keep your self-managed super fund ( SMSF ) compliant with government regulations.   Key Services Provided by SMSF Accountants What does an  SMSF accountant  do to ensure your fund runs smoothly? Here’s a detailed look at their main services: Daily Management: They use cloud-based accounting platforms to manage your fund’s accounting finances, ensuring accuracy and compliance. Tax Handling: They prepare and submit annual  tax returns  and manage all necessary tax documents for your fund. Record Keeping: They maintain meticulous records of your fund’s accounts, investments, and pensions, which is crucial for audits and compliance. Compliance Documents: They keep record all necessary compliance documents, ensuring your fund adheres to legal standards. Annual Audits: They coordinate an external audit each year, a mandatory requirement to verify t
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The role of an Accountant in managing an SMSF

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  What is an SMSF? An  SMSF , or  Self-Managed Superannuation Fund , is a type of retirement fund in Australia. Unlike other super funds, members of an SMSF also act as trustees. This means they have control over investment decisions and how their super is managed. However, with members control comes big responsibility. Managing an SMSF involves a lot of work and knowledge. This is where an  SMSF Accountant  can help. Why do you need an  SMSF Accountant ? Managing an SMSF can be complex and time-consuming. Do you know all the rules and regulations you need to follow? If no, here is how an SMSF accountant can assist: Compliance:  Ensuring your SMSF meets all legal reporting requirements. Record-keeping:  Keeping accurate records of all transactions. Tax management:  Helping with tax obligations interactions. Financial reporting :  Preparing financial statements and reports. Key roles of an SMSF Accountant 1. Compliance and regulations An SMSF must comply with laws and regulations. This
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