ATO View on SMSF Reserves

15 Mar 2018

Written by

David Busoli, Principal

The ATO has confirmed that they will closely scrutinise SMSF reserves that have been established from 1 July 2017 to determine that their use is not to circumvent the transfer balance cap or total super balance restrictions.

Though they acknowledge that there are legitimate uses for reserves, the ATO will be looking at the unexplained creation of new reserves, increasing balances of existing reserves, or allocations of amounts from a reserve directly into the retirement phase.

This latest release does not seem to add any new detail to previous warnings.

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