SMSF

• Existing arrangements are reported to be grandfathered, and contracts entered into before that date may settle under the earlier rules.

• Division 296 applies at 15 per cent above $3 million and a further 10 per cent above $10 million of total super balance.

• The ATO says the business must be operated to provide retirement benefits and look closely at family employment and private use of assets.

• The ATO expects a trust deed that permits the investment, a separate wallet in the fund's name, fair market value in Australian dollars and full records.

• Applications are approved by the ATO, and an SMSF should release money only if the ATO has approved it and only up to the approved amount.

• The tax definition sets a higher bar, requiring two legally qualified medical practitioners to certify it.

• SMSFs can be vulnerable because of concentrated control, enduring powers of attorney, death benefit nominations and related-party transactions.