Non-arm’s length expenses – changing old habits

“Does my SMSF have to pay for that?” Or, “how much does my SMSF have to pay for that?” Both are pretty innocuous questions, but now more than ever SMSF expenditure is under the spotlight. In light of the recent ‘Your Future, Your Super’ best financial interest duty to be imposed on SMSF trustees, it appears the issues won’t go away in a hurry. Expenses have for some time created compliance and taxation issues, largely around contributions, but since 1 July 2018 they can add a whole new layer of taxation pain for what could otherwise have been considered frugal operating practices in the best interest of an SMSF. The divide between SIS compliance and tax administration has often created issues but SMSF expenditure appears to be an issue that keeps on giving, or in this instance taking, and the key issues associated with fund expenses are the focus of this bulletin

To read this bulletin in its entirety download the PDF version here.

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