Question: Can I use my personal credit card to pay SMSF expenses, for example, insurance premiums, auditor fees, accountant fees, etc. and treat these expenses as post-tax contribution to my SMSF. Is this legally allowed?
Answer (By Tony Negline): It is not best practice to pay fund expenses in this way. For auditing purposes and simplicity, you are best to have fund expenses paid by the fund itself.
Frequent flyer points from a credit card use in this case, whilst probably seen as incidental, are a potential hassle from a sole purpose test perspective. The credit card debt might be seen as your super fund borrowing from you, which it isn’t allowed to do.