02/02/2010

-       The Tax Commissioner has recently set out a view that the trustee of an SMSF can purchase a trauma insurance policy in respect of a member and, provided certain conditions are met, satisfy the SIS Act sole purpose test (see ATO Release SMSFD/2009D1).

-       On 14 December 2009, the SIS Regulations were amended to include persons accredited as SMSF specialist auditors by the SMSF Professionals' Association of Australia Ltd (SPAA) in the category of approved SMSF auditors.

-       The 2008/09 returns for new SMSFs (ie SMFS established in the 2008/09 tax year) must be lodged by 28 February 2010.   According to a recent edition of the Tax Office’s SMSF Newsletter, a number of returns have been lodged without completion of auditor details or with incorrect responses to the questions set out in Section I.  Lodging an incomplete or inaccurate return can cause processing delays and may also expose the fund to unnecessary compliance action.  

-       Late last year the Commissioner announced that in 2009-10 the SMSF compliance program would concentrate on loans, in-house assets, borrowings and non-arm’s length transactions.  It might be wise to ensure that your funds comply in those areas.

For further information or assistance regarding SMSFs please contact Michael Hallinan of TOWNSENDS BUSINESS & COPORATE LAWYERS on (02) 8296 6222.