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DIY Super Funds pay 15% tax on assessable income & deductible contribution received. DIY Super Funds paying a Member pensions are not taxable.
Assets held for less than 12 Months
If the asset was held for less than 12 months, the full capital gain is taxable. But if capital gain relates to a member account from which a pension is being paid, any capital gain is not taxable.
Assets held for more than 12 Months
If the asset is bought before 21st September 1999 than there is choice to use the frozen indexation or a maximum of 1/3 discount.
If the assets are bought after 21st September 1999 and held for over one year than 1/3 discount can only be claimed.
But if capital gain relates to a member account from which a pension is being paid, any capital gain is not taxable.
Any excess imputation credits can be refunded to DIY Super Funds. Refunding excess imputation credits ensures that the income of super funds is taxed at the concessional rate of 15%. Most Australian companies pay fully franked dividends where imputation is at the rate of 30%. Hence, DIY Super Funds would have tax paid for other income such as Interest Income and Employer contributions.
Expenditure of a DIY Super Fund, which is not of a capital, private or domestic nature, is deductible.
- actuarial costs;
- accountancy fees;
- audit fees;
- premiums under an indemnity insurance policy;
- costs in connection with the calculation and payment of benefits to members
- interest on money borrowed to secure temporary finance for payment of benefits, costs in calculating and testing reasonable benefit limits of members;
- investment adviser fees and costs in providing pre-retirement services to members;
- subscriptions for membership paid by a fund to The Association of Superannuation Funds of Australia Limited; and other administrative costs incurred in managing the fund.
- Supervisory Levy, however, the late lodgement amount of the levy is not deductible
- the deductibility of legal expenses is determined and usually depends on whether the expenses are of a capital or revenue nature;
- up-front fees incurred in investing money are of a capital nature and are not deductible
- the cost of amending trust deeds are allowable as a deduction provided the expenditure is not of a capital nature