Property is a common investment option for SMSFs, however, the ATO has a number of regulations SMSF owners need to be wary of. The ATO is particularly concerned with those using SMSF assets to invest in property in a way that is detrimental to retirement purposes. To ensure you do not breach provisions of the Superannuation Industry (Supervision) Act 1993 (SISA), here is a breakdown of the ATO’s common regulatory concerns: Whether arrangement amounts to your SMSF are being made to purposes outside of the sole purpose test (referred to as a collateral purpose). Whether your SMSF meets operating standards such as record-keeping, ensuring assets are appropriately valued and recorded at market price, and keeping SMSF assets separate from members’ assets. Whether the arrangement includes the SMSF acquiring assets from a related party. If the arrangement features the SMSF borrowing money and meets borrowing provisions. Whether the SMSF has contravened the in-house assets by exceeding the level of in-house assets allowed. Cases of illegal early release of superannuation when SMSF arrangements do not meet relevant payment standards. Also keep in mind that you cannot improve a property or change the nature of a property while there is a loan in … Continue reading SMSF property investment regulations to keep in mind