As part of the response to COVID-19, the ATO has announced some potential relief for a Self-Managed Superannuation Fund (SMSF) that rents a commercial property to a related party’s business.
The ATO will not be taking compliance action in the 2020 and 2021 financial years for any rent reductions given to the tenant, where the tenant is suffering financial distress due to COVID-19. There will be criteria that needs to be met and documentation to support the decisions made by the SMSF trustees. Please contact our specialist SMSF team if these circumstances apply to your fund.
Where an SMSF has a limited recourse borrowing arrangement in place, SMSF Trustees should contact their bank directly to check if they can defer loan repayments for six months.
Minimum pension withdrawals for the 2020 and 2021 financial years have been halved.
The Government also announced that eligible individuals may be able to access up to $10,000 from their superannuation before June 30, and another $10,000 after 1 July. If you believe that you are eligible for this relief and are a member of an SMSF, please contact us to discuss the process that is required to be followed.
Please call Christine, Cally or Cate from our SMSF team if you need further information on how to deal with your situation.
| Orange 02 6362 1533 Email us 27 Sale St (PO Box 843) Orange NSW 2800 | Molong 02 6366 8049 Email us 11 Bank St (PO Box 31) Molong NSW 2866 |
By Christine Whybrow and Cate Cunial – YBM
Yates Baker McLean. Accountants and Business Advisors situated in the Central West of NSW. Offering comprehensive advice for all your financial needs including tax, auditing, business advisory, self managed super funds, specialised industry experience and financial planning.