It’s time to give related party lease arrangements an annual health check. Is a rent adjustment due? Are trustees able to keep offering COVID rent relief? What about NALE announcements?

The ATO has released a draft legislative instrument (SPR 2020/D2). It makes it explicit that some important situations created when SMSF landlords provide rent relief to tenants (as a result of Covid-19) will not result in an in-house asset.

There are some situations where an SMSF is no longer suitable or appropriate for its members. However, it is not always possible to immediately wind up the fund.

My client intends to base the tenant's rent relief on the National Cabinet’s Mandatory Code of Conduct – Commercial Leasing Principles. I’m worried providing a rent deferral could cause in-house asset issues for the fund. Am I right?

My client’s SMSF owns units in a non-geared related unit trust which owns property. The trust entered into a contract to sell the property to an unrelated party on vendor finance terms. Is such a transaction permitted under the superannuation laws?

No, but it may still be appropriate to do so depending on the fund’s future intentions.

Approximately 10% of SMSFs own commercial property and often this commercial property is leased to a related party. There are a number of rules to follow to ensure the arrangement complies with the superannuation / tax laws.

SMSFs can claim deductions for certain expenditure incurred by the fund provided the residential investment property is rented or available for rent.

From 1 July 2017 it became much harder to build up more superannuation thanks to a tightening of the limits on contributions. The maximum “concessional contributions” reduced to $25,000 pa.

Full Federal Court decision in the Aussiegolfa case may have resulted in a significant setback to the ATO in its thinking on the sole purpose test.

The Bills necessary to make both the above measures law have now received Royal Assent.