SMSFs inevitably incur expenses during their operating life. It is important to understand that of the expenses incurred, not all are able to be claimed as a deduction in the annual tax return. Some expenses may be incurred as a capital outlay or may not be fully deductible under the Income Tax Assessment Act 1997. Others may be determined by the Superannuation Industry (Supervision) Act 1993 and Superannuation Industry (Supervision) Regulations 1994 and need special attention to determine where they should be paid from, such as administration penalties.
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