Does your SMSF meet the sole purpose test?

If you have a self-managed super fund (SMSF), then you need to meet the sole purpose test to be eligible for the tax concessions that are normally available to super funds. The sole purpose test aims to ensure that SMSFs are maintained for the purpose of providing benefits to members upon retirement or for beneficiaries if a member dies before retirement.

When a sole purpose test is contravened, the fund will lose its concessional tax treatment and be subject to the highest tax rate. Members could also be disqualified as a trustee and face civil and criminal penalties such as fines or imprisonment. The test is divided into core and ancillary purposes, where regulated funds must be maintained for at least one core purpose and can add one or more ancillary purposes but cannot be run only for ancillary purposes.

The core purposes are paying benefits to:

The ancillary purposes are:

By outsourcing your SMSF administration to the SMSF Compliance Experts, your clients will receive best-in-class SMSF compliance service.

Are you ready to never worry about SMSF administration again?
Contact us today to get more information or to get started!

Marsden Park

SMSF Compliance experts

37 Dromana Rd
Marsden Park
NSW 2765

P. 0419 283 241

E.

GET DIRECTIONS >>