SMSF payments cover the day-to-day financial transactions that keep a self managed super fund running: accounting and audit fees, ASIC annual review fees, insurance premiums, investment management costs, ATO tax liabilities, and whatever else the fund owes. Every payment must come from the fund’s bank account, be authorised by the trustee, and be recorded for audit and tax purposes. SMSFcentral processes all routine SMSF payments as part of our Full Service administration tier.
What’s Included
- Processing of fund expense payments (accounting fees, audit fees, legal fees)
- ASIC annual review fee payments for corporate trustees
- Insurance premium payments (life, TPD, income protection held within the fund)
- ATO tax payment processing (income tax, CGT, PAYG instalments, excess contributions tax)
- Supervisory levy payments
- Investment-related payments (brokerage, management fees, property expenses)
- Payment records maintained for audit trail
- Bank transaction reconciliation
Note: SMSF payment processing is included in SMSFcentral’s Full Service tier. It is not offered as a standalone service.
Our Process
- Payment identification. We monitor incoming invoices, ATO notices, and scheduled payments. Recurring items (insurance premiums, ASIC fees) sit on a payment calendar so nothing gets missed.
- Trustee authorisation. All payments require trustee approval before processing. We present payments for authorisation with supporting documentation: the invoice, ATO notice, or policy schedule. For recurring payments where a standing authority exists, we process within the pre-approved parameters.
- Payment execution. Once authorised, we process the payment from the fund’s nominated bank account. Payments are made via EFT, BPAY, or direct debit depending on the payee’s requirements. We ensure correct reference numbers and payee details to avoid misapplied payments.
- Recording and reconciliation. Every payment is recorded in the fund’s accounting system under the correct chart of accounts code. Bank transactions are reconciled against actual account movements. Discrepancies are investigated and resolved the same day where possible.
- Audit-ready documentation. Payment records, authorisation evidence, and invoices are filed for the annual audit. The auditor needs to verify that every dollar leaving the fund was properly authorised and spent on a legitimate fund purpose. Clean records mean faster, cheaper audits.
Regulatory Context
Every payment out of an SMSF must pass the sole purpose test (s62 SIS Act). Fund money can only be spent on expenses related to running the fund and providing retirement benefits to members. No exceptions.
Key rules governing SMSF payments:
- SIS Act s62, sole purpose test. Expenses must be for the fund’s sole purpose. Personal expenses of members or trustees paid from the fund are a contravention that the ATO actively pursues.
- SIS Act s65, financial assistance prohibition. The fund must not provide financial assistance to members or relatives using fund assets. Paying a member’s personal bills from the fund account breaches this section, even if the member intends to repay the amount.
- ATO tax obligations. SMSFs must lodge an annual return and pay any resulting tax liability. The current SMSF tax rate is 15% on income and 10% on capital gains (for assets held longer than 12 months). Pensions in retirement phase may be tax-exempt under the exempt current pension income rules.
- ASIC fees. Corporate trustees must pay the annual review fee ($55 for special purpose companies as at 2025–26). Late payment results in penalties and potential deregistration of the trustee company.
- SIS Regulation 6.17. Changes in fund details (including bank account changes) must be reported to the ATO within 28 days.
Common Pitfalls
The most common audit finding, year after year. A trustee pays a personal bill from the SMSF bank account, sometimes by accident, sometimes not. Either way, it is a sole purpose test contravention. The fix: repay the fund plus market-rate interest, immediately. The auditor reports it to the ATO regardless of whether you have already corrected it.
Late payment of SMSF income tax results in the general interest charge (GIC), currently calculated at the base rate plus 7%. On a $20,000 tax bill, even a few months’ delay adds hundreds of dollars in interest. Repeated late payment can also trigger ATO compliance attention.
Auditors need to verify every expense was legitimate and authorised. No invoice? No authorisation record? The auditor qualifies the report, which goes to the ATO. Under s35B of the SIS Act, poor record-keeping attracts penalties of up to $18,780 per trustee.
An SMSF can pay for advice that relates to the fund: investment strategy reviews, contribution planning, pension commencement advice. It cannot pay for personal financial planning, general estate planning (unless it directly concerns the fund’s death benefit nominations), or advice about non-super investments. The ATO looks at adviser fee deductions during audits, so the distinction matters.
Frequently Asked Questions
Any expense directly related to the fund’s operation: accounting, audit, legal advice, financial planning fees (where fund-related), insurance premiums on policies held by the fund, investment costs, and ATO charges. The expense must pass the sole purpose test. If it doesn’t relate to the fund providing retirement benefits, the fund cannot pay it.
Only if the advice relates specifically to the fund. General personal financial advice (such as advice about non-super investments or household budgeting) cannot be paid from fund money. The fund can pay for advice on contributions strategy, investment strategy, pension commencement, and similar fund-specific matters.
The due date depends on how the fund lodges. For funds lodged through a tax agent, the standard due date is 15 May following the end of the financial year. Specific due dates vary, so check the ATO’s lodgement program for the current year. Late payment attracts the general interest charge from the original due date.
Most fund administration expenses are deductible to the fund under s8-1 of the Income Tax Assessment Act 1997: accounting fees, audit fees, ASIC fees, and insurance premiums. Investment-related expenses are also generally deductible. The deduction reduces the fund’s taxable income at the 15% SMSF rate.
Yes, provided the expense was genuinely a fund expense and the trustee provides evidence (invoice, receipt). The reimbursement should be processed promptly and documented. The fund should not routinely rely on trustee reimbursements. Expenses should be paid directly from the fund’s bank account wherever possible.
We investigate immediately and start recovery through the receiving bank. The misdirected payment stays on the fund’s books as a transaction until recovered. Better to prevent it: we check payee details against invoices before processing anything.
Related Solutions
- SMSF Compliance and Day-to-Day Administration: the full administration service that includes payment processing
- SMSF Property Investment: property-specific payments including rates, insurance, and loan repayments
- Audit Review Coordination: how payment records feed into the annual audit file
Included in Full Service
Payment processing is part of SMSFcentral’s Full Service administration. Call 02 8412 0086 or email [email protected] for a quote covering your clients’ funds.
Benefit payments to members.
Insurance premiums.
Property expenses.
Investment purchases.
Payment of Income Tax, PAYG Instalments and BAS payments.
ASIC fees.
Adviser fees.