The ATO warned trustees of self-managed superannuation funds (SMSFs) to be cautious when investing in property.

Acting Commissioner Bruce Quigley said, “Trustees need to be sure that property is the right investment for their SMSF and that the arrangement is legal.”

“if structured incorrectly, some of the arrangements cannot simply be restructured or rectified. The only option may be to unwind the arrangement which could involve forced sale of assets at an inconvenient time. This could be very expensive for the fund with potential stamp duty and tax consequences.”

For taxation advice in relation to SMSFs, please call Wen on (02) 9871 3429.