Hot Issues
spacer
State and Federal COVID-19 support
spacer
ATO extends COVID-19 relief for SMSFs
spacer
Three ways to keep market uncertainty in perspective
spacer
SMSFs, employee share schemes & NALI
spacer
Low interest rates require a strategic rethink
spacer
Greenhouse gas emission by country since 1880
spacer
SMSFs can face situational traps affecting related-party transactions with former spouse
spacer
The right way to rebalance your investment portfolio
spacer
Lockdowns and mental health
spacer
The rise of the female investor
spacer
ATO flags availability of COVID-19 early release super recontribution
spacer
World's largest armies 1816 - 2020
spacer
Retirement can be risky business
spacer
A proven way to build wealth
spacer
Two AAT decisions on what constitutes business real property
spacer
ATO zeroes in on SMSF lifestyle assets
spacer
SMSF scams are on the rise: Here’s how to fight back
spacer
Four steps to plan for a better retirement
spacer
‘Mammoth consequences’: ATO’s NALI ruling draws ire from professionals
spacer
Videos and other resources for our clients
spacer
SMSF members highly satisfied with funds
spacer
6-member SMSF registration availability to begin mid-August
spacer
SMSFs go for growth
spacer
Tax time: calculating investment income and deductions
spacer
ATO extends Division 7A relief
6-member SMSF registration availability to begin mid-August

 

SMSFs will be able to add a fifth or sixth member to the fund using the Australian Business Registry from mid-August.

 

             

Since 1 July, self-managed super funds (SMSFs) have been able to have up to six members. The ATO said it has recently been making updates to the Australian Business Registry (ABR) which will make it easier for funds to add a fifth and sixth member to the SMSF.

“These updates are expected to be completed by mid-August,” the ATO said.

“We recommend you wait until the ABR is updated before you add more than four members. However, if you wish to add additional members, an interim solution is available for you.”

The ATO has also noted that if SMSFs are considering expanding, it will need to consider what the fund’s trust deed allows, and the structure of the fund. 

Furthermore, SMSFs should review their reporting obligations and the laws of their state or territory that may restrict the number of trustees a trust can have, as an SMSF is a type of trust.

In a recent technical update, Heffron managing director Meg Heffron also said that the funds will likely need a corporate trustee. 

“While we think corporate trustees are a good idea anyway for a host of reasons, they are actually the only solution in many six-member funds, as most state laws governing trusts only allow a maximum of four individual trustees,” Ms Heffron said.

“There are also considerations for the SMSFs where more people will need to sign documents and that can become administratively challenging.

“It’s good practice to have all directors sign some documents — and that means six people.

“At the very least, most documents, such as financial statements, will need to be signed by at least half of the directors, which means three people for a five- or six-member fund. Of course, this is where digital signatures really come into their own.”

 

 

Tony Zhang
16 July 2021
smsfadviser.com

 

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