POWERED BY MOMENTUM MEDIA
Key AAT ruling on SMSFs
 |
| Michael D'Ascenzo
|
The Australian Taxation Office (ATO) has chosen to highlight a recent Administrative Appeals Tribunal decision upholding the ATO’s approach to taking action against self-managed superannuation funds (SMSFs) that contravene in-house asset rules.
The Commissioner for Taxation, Michael D’Ascenzo, pointed to the AAT decision, which supported the position that once a fund is found to be non-compliant it loses access to concessional tax treatment, with the result that its taxable income is assessed at the top marginal rate.
He said the decision ought to be interpreted by trustees as a reminder to act on any breaches.
D’Ascenzo said the ATO had increased its focus on ensuring high levels of compliance among trustees given the important role of SMSFs and their access to concessional tax treatment.
The AAT decision related to the trustees of a SMSF that breached the in-house asset rules after loans were made to a related company to support its business activities.
The company failed to repay the loan until four years later, two years after the fund’s auditors reported the breach to the trustees and the ATO.
AUTHOR
Mike Taylor
Recommended for you
The impact of identity theft and its threat to superannuation savings were highlighted in a case that went before the Federal Court at the end of 2023.
A recent NSW Supreme Court decision is an important reminder that while super funds may be subject to restrictive superannuation and tax laws, in essence they are still a trust and subject to equitable and common law claims, says a legal expert.
New research from the University of Adelaide has found SMSFs outperformed APRA funds by more than 4 per cent in 2021–22.
The SMSF Association has made a number of policy recommendations for the superannuation sector in its pre-budget submission to the government.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
61.07 3 y p.a(%)
2
Spire Oaktree Opportunities XI First Close USD
59.21 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.56 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
31.06 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
26.81 3 y p.a(%)
