Superannuation Warning

The Tax Office has released a Taxpayer Alert in which it warns self-managed superannuation funds (SMSFs) with pre-existing interests in unit trusts of arrangements involving the transferring of benefits associated with the in-house assets transitional provisions.

The Tax Office says that such arrangements may involve superannuation regulatory issues and taxation issues.

Broadly, the in-house assets rules restrict a regulated superannuation fund from having more than 5% of the total market value of its assets in a related party of the fund. However, transitional provisions may apply to exclude an asset from the in-house asset rules.

• NOTE: Trustees of SMSF should review, in consultation with their professional advisers, pre-1 July 1999 investments in related trusts.