Do understand where the ATO is looking

The ATO – as tax collector and regulator of self-managed super– repeatedly warns SMSFs about complying with superannuation and tax laws regarding property.

The tax office isconcentrating much attention to geared SMSF property.

Superannuation commentator Trish Power writes in her online self-managed super publication, SuperGuide:

“The Australian Taxation Office is worried about SMSF trustees and property."

"Although the ATO doesn’t express it thisway, the SMSF regulator is particularly worried about the sheer weight of money controlled by SMSF trustees, and a bit edgy that this financially powerful group may go feral.”

For instance, the ATO issued a Taxpayer Alert late last year, which included the warning:

“It is important to ensure that any arrangements entered into by an SMSF to invest in property are properly implemented, particularly those involving limited-recourse borrowing arrangements or the use of a related united trust.”