Did you know that as of December 2018, there are over half a million Self Managed Super Funds (SMSFs) in Australia, with an estimated asset holding of $726 billion, which equates to around one third of total super assets!
The data from the ATO also indicated that there are over 1.1 million members who have decided to be a member of a SMSF, and if you’re one of them, the team at Kenny Spring Solicitors are here to help.
So what’s happening at the moment in SMSF lending and compliance?
With investors closely monitoring changes in the property market, lending and compliance announcements may put further pressure on SMSFs.
Macquarie Bank has confirmed it is joining AMP, Commonwealth Bank and Westpac in discontinuing residential property lending to SMSFs (though the banks will continue to support mortgages already issued). NAB ceased SMSF residential lending in 2015.
The ATO has indicated it will, amongst other things, continue to focus on SMSFs failing to lodge annual returns as required. The Assistant Commissioner, Superannuation indicated to the SMSF Association National Conference that 86% of SMSFs do lodge on time, and it will be the 14% which the ATO will continue to target through the non-lodgement program. Late lodgement and non-lodgement are red flags which the ATO will be looking for when assessing compliance.
What can SMSF trustees do to avoid the squeeze?
It remains essential that trustees or directors of corporate trustees are educated about their obligations and are proactive in ensuring compliance of the SMSF. Expert advices on management of the fund and on transactions within the fund are also key to meeting this goal.
The Business Law team at Kenny Spring Solicitors is available to answer questions you may have regarding your SMSF transactions, and can also assist with referrals for SMSF lending. Give our expert team a call on 1800 650 656 in Bathurst, Lithgow or Oberon. We’re here to help!
Aaron Strickland and Lauren O’Brien | Business Law and Property Team