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Aussiegolfa and Hart – Important guidance for SMSFs

Published on 01 Dec 18 by "TAXATION IN AUSTRALIA" JOURNAL ARTICLE

Two recent decisions provide much needed guidance in respect of self-managed superannuation funds. In Aussiegolfa, the Full Court applied the general law conception of a trust and determined that a sub-fund was a distinct trust, with the result that the in-house asset test was breached, notwithstanding an express provision in the constitution to the contrary. Further, their Honours held that the sole purpose test could be met if a related party has the use of the SMSF’s asset, where market rent is paid. In Hart, the Administrative Appeals Tribunal dealt with a potential consequence of failing to meet those fundamental tests, namely, the disqualification of a trustee (or its directors), and serves as an important reminder of the wider implications that disqualification may cause.

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Angela Lee
Angela is a Barrister at Douglas Menzies Chambers.
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