SMSF

These matters must genuinely be considered and reflect the actual circumstances of the fund and its members, rather than repeating generic wording.

An auditor checks that the strategy exists, is appropriate and has been reviewed, so a fund that cannot show any review over several years may attract questions.

A fund can have up to six members. Trustees can act as individual trustees, where every member is a trustee, or use a corporate trustee, where a company acts asTrusteeand each member is a director. Each structure carries different costs, paperwork and rules around …

The ATO's position is that any amount illegally accessed is included as income in the member's tax return, even if it is returned to the fund. The withdrawal is a completed event for tax purposes the moment it happens. Putting the money back does …

Recurring features across illegal schemes include promises of early access for everyday expenses, holidays or debts; unsolicited approaches; high fees or commissions; being asked to sign documents that are not understood; claims of a legal loophole or ATO approval; and pressure to act quickly …

The prohibition applies regardless of the terms, the paperwork or the interest rate. A carefully drafted loan agreement does not cure the breach; the mere fact that the fund has lent to or assisted a member or relative is the problem.

Voluntary disclosure means telling the ATO about a breach before it is found through an audit or other means, done genuinely and completely. The ATO offers an early engagement and voluntary disclosure process for SMSF trustees for this purpose. A disclosure typically explains what …