ATO taking an interest in SMSF Deeds

The Assistant Commissioner – SMSF Segment has recently commented that the ATO is surprised by the number of SMSFs which are currently providing pensions – typically transition to retirement pensions – when the applicable trust deeds neither contemplates nor permits the trustee to pay such pensions.

According to the Assistant Commissioner a key element of the SMSF compliance program for the next 12 months will be on “out of date” trust deeds.

Fortunately for SMSFs which are on the SUPERCentral system, this will not be an issue: the last update was in May 2015.

However, for SMSFs which have not updated their trust deeds for many years, it may be a different story – such as having no power to issue transition to retirement pensions, no power to enter into limited recourse borrowing arrangements, no provisions to permit members to make binding death benefit nominations and the list goes on.

2015/16 could be the financial year in which to modernise the trust deeds of SMSFs which are not already on the SUPERCentral system.  For information regarding our special bulk update assistance please call 02 8296 6266.