Hot Issues
spacer
Covid-19 resources
spacer
How early super withdrawals add up
spacer
AFP teams up with ATO, Treasury in COVID-19 tax fraud taskforce
spacer
ATO extends initial JobKeeper payment deadline
spacer
ATO releases JobKeeper alternative test
spacer
Our Website, your resources
spacer
Consumer satisfaction up for SMSFs, down for industry funds
spacer
Superannuation for younger investors
spacer
How to stay the course in retirement
spacer
COVID-19: Early Childhood Education and Care Relief Package
spacer
Government announces mandatory code for rent relief
spacer
ATO clarifies COVID-19 rent relief concerns
spacer
SMSFs in the ATO firing line
spacer
Avoid SISR traps in early access to super scheme
spacer
Data so large it's hard to comprehend.
spacer
Ride the market to recovery
spacer
Historic $130bn wage subsidy to cover 6 million workers
spacer
Stage 2 – Covid-19 stimulus package.
spacer
Covid-19 Update - Small Business
spacer
PM launches $17.6 billion virus stimulus plan
spacer
What 2020 holds for low cost funds
spacer
Non-concessional contributions breaches on ATO radar
spacer
Expected GDP by country 2010 to 2100
spacer
Investing with small amounts
spacer
A resource hub for our clients.
spacer
New laws mean 65-year-olds should hold off on large contributions
spacer
Understanding the dangers with downsizing and super
spacer
Statistical picture of Australia - Update
ATO letters indicate a wider SMSF warning

Letters sent by the ATO to nearly 18,000 SMSFs may serve as a warning to a far greater number of funds with similar strategies, an SMSF expert has claimed.

       

 

Letters sent by the ATO to the trustees of nearly 18,000 SMSFs may have a potential impact on, and serve as a warning to, a far greater number of funds who have invested in a single asset or asset class, an SMSF expert has claimed.

Smarter SMSF chief executive Aaron Dunn said while the ATO sent letters to the trustees of 17,700 funds the total number of SMSFs with more than 90 per cent of investments in a single asset or asset class was 180,000.

“The ATO has made people aware that nearly one third of funds have invested 90 per cent or more within a single asset or asset class and the thing that will be picked up from these letters will be the expectations that now exist around diversification and the investment strategy,” Dunn said in a webinar held yesterday.

“In my view this heightens the requirements to ensure the investment strategy documents do spend more time satisfying the audit process and the regulator as to how the diversification requirement is satisfied by that single asset class, and this is not just for property investments or property with an LRBA but where a fund has any heavy asset allocation.”

Dunn said the letter writing campaign was a targeted approach but was bringing a wider awareness of investment strategy requirements to the SMSF market for trustees as well as for auditors.

He pointed to the letters also being sent to auditors by the ATO and legal cases, such as Cam & Bear and Baumgartner, as demonstrating auditors were also open to higher levels of exposure in relation to inadequate investment strategies.

“What are going to be the expectations of auditors in making sure trustees have complied with Superannuation Industry (Supervision) Regulation 4.09?,” Dunn said.

“Which is why I go back to the 180,000 figure because auditors are going to be spending more time looking at same set of principles and considerations for all funds that have heavy asset concentration and looking to improve the documented decisions for diversification.”

 

 

Jason Spits
September 26, 2019
smsmagazine.com.au

 

Pattinson Financial Services Pty Ltd ABN 17 121 851 376 is a Corporate Authorised Representative of Infocus Securities Australia Pty Ltd
ABN 47 097 797 049 AFSL and Australian Credit Licence No. 236523

Tel: +61 2 8850 6888 | Fax: +61 2 8850 6407 | Toll Free 1300 466 637 | PO Box 6253 Baulkham Hills BC NSW 2153

site By PlannerWeb