smsf sole purpose test

SMSF Sole Purpose Test

The sole purpose test is a test the ATO uses to ensure that SMSF trusts are operating with the intention of only benefitting from their funds through the sole purpose of either retirement or in the event of a member’s death. While the way that an SMSF manages its investments is not ruled by the ATO, it does have some …

In House Asset SMSF

There are numerous investment restrictions placed on super fund trustees by SMSF rulings. These include very stringent restrictions on any investment that involves a fund member, a relative of a member or any related company or trust. In House Asset SMSF An in house asset  is defined by ATO as a loan to or an investment in a related party. …

Letter of Compliance | SMSF ATO

Your new employer will request a Letter of Compliance issued by ATO to make employer contributions to your SMSF. The SMSF Notice of Compliance, also sometimes called a letter of compliance, is a document issued by the ATO to an SMSF. According to the ATO “an SMSF that holds a notice of compliance that is till in effect is eligible …

Tougher Rules for non-lodgement of SMSF annual returns

The Australian Taxation Office will take a tougher stance on the non-lodgement of SMSF annual returns. SMSFs which have two years or more of overdue lodgements will have their regulation details removed from Super Fund Lookup. ATO will keep the regulation details off Super Fund Lookup until an SMSF’s lodgements are up to date and that will potentially affect rollovers …

ATO clarifies minimum shortfall rules for pensions

Have you met the minimum pension payment for the financial year? In the Draft Taxation Ruling 2010/D3 the ATO proposed a position that if a superannuation fund did not meet the minimum pension payments for a member in a given year, then the fund could not treat that member balance amount to be in pension phase from the beginning of …