How to complete 2013 SMSF income tax return

The Self-managed superannuation fund annual return form (‘SMSF annual return’) is updated by the ATO annually to incorporate any new developments in tax and superannuation (including developments associated with superannuation administration).

As a result of recent developments in superannuation, some of the key changes affecting the SMSF annual return for 2013 income year are highlighted below:

Section A subsection 10:  Exempt current pension income

  • Record the total Exempt Current Pension Income (‘ECPI’) deduction if the fund is paying a pension under Label A.
  • Specify the method used to calculate ECPI, i.e.: segregated or unsegregated method under Labels B or C.

Exempt current pension income

Important note
If the fund is 100% pension mode, the assets of the fund are segregated 100% to paying a pension and therefore an actuary certificate is not required.

Section B:  Income

  • For funds in 100% pension mode, there is no need to complete Section B (see below).
  • Record all expenses under Section C as non-deductible.
  • Supervisory levy can be reported as a deductible expense under Label J1, which will result in a taxable loss; however, this loss cannot be carried forward to Section E.
  • Report all other tax offsets under Section D.

Did the fund have any other income that was assessable?

Section C:  Deductions and non-deductible expenses

  • For funds in part pension mode, there is still a requirement to complete Section B exactly like the 2012 SMSF annual return.
  • The deductible and non-deductible expenses now have to be split clearly under Section C.

Section J:  Other information

  • It must be noted that the 2012 Section J on regulatory questions has been completely dropped and replaced by Other Information Section.


Reliance Auditing Services is a specialist independent auditing services firm providing quality audits to SMSFs, companies, not-for-profits and AFS licensees all over Australia. Reliance Auditing places a huge emphasis on educating our clients to ensure they fulfil their reporting obligations.Call: 1300 291 060 or email

DISCLAIMER: This information is an interpretation of rules, regulations and standards. It should not be considered as general or specific advice and neither purports, nor is intended to be advice on any particular matter. No responsibility can be accepted for those who act on the contents of this publication without first obtaining specific advice. Liability limited by a scheme approved under Professional Standards Legislation.