Hi Linda

There are normally no compliance issues with such subscription and seminar expenses as long as they can be explained as of being of benefit to the Fund and comply with the sole purpose test.

From a tax deduction perspective if the expense relates to earning assessable income then you can claim a deduction for the expense.

There would be no deduction if it is of a capital nature such as incurring the expense before any income has been earned.

Using the property program if the Fund already owns a property and is earning income from it it can claim a deduction normally on money spent to further educate the trustees re improving income return. You would want the seminar to cover topics such as increasing rental return and similar type topics to be able to claim a deduction.

An article that addresses the issue can be found at:

www.smsfadviser.com

SMSF auditors have been witness to some outlandish expense claims and get frequently asked: “Can an SMSF claim this as a deduction?”

Thanks

The Auditors Institute