How to Pass the Sole Purpose Test

How to Pass the Sole Purpose Test

Making sure an SMSF passes the sole purpose test (“SPT”) is one of the cornerstones of operating a compliant SMSF. One of the most important things to understand is that it’s not the type of investment dictating whether the SPT is met, but rather the purpose for which...
New Rules Turn NALI Into Gnarly

New Rules Turn NALI Into Gnarly

The government has recently passed legislation to reduce the ambiguity surrounding the effect of non-arms length expenditure (NALE) on SMSFs.   Where a fund incurs less (or nil) expenditure by...
Does SMSF Litigation Risk Die with Trustees?

Does SMSF Litigation Risk Die with Trustees?

How many times have we heard that it’s only an SMSF audit; there’s not much in the fund, or it’s not high-risk? For some reason, the perception still exists that an SMSF is more straightforward to audit than any other entity. Interestingly, the auditing standards that...
Accepting EOFY Contributions After June 30

Accepting EOFY Contributions After June 30

Typically, SMSF contributions aren’t counted until the payment is received in the fund’s bank account. The problems start, however, when June 30 falls on a weekend or Monday as this provides minimal scope for contributions to be accepted at the last minute. The...