SMSF’s are required to pay tax on their income just like any other individual or company. The ATO now requires entities to pay their estimated year-end tax liability progressively throughout the four quarters of a year.
So, an SMSF will generally need to pay tax instalments if either:
- The instalment rate the ATO has calculated is greater than 0% and the notional tax is $500 or more
- The instalment income included in the most recent tax assessment is $2m or more
