Noah Group - Trustees Of Smsfs Beware Of Ato Focus

Brett Marks, CEO of the Noah Group tells Trustees of Self-Managed Funds to beware, the tax office is escalating its focus on your activities.
Thankfully though, the Noah Group's licensed professionals strictly adhere to the new SMSF industry rules and can help clients wanting to set up their own SMSF and leverage into property. For clients who aspire to enter the property market and who have approximately $120,000 in super, the Noah Group can assist you through your own property trust. Revisions to the SIS Act in September 2007 have made this possible in Australia and allow those in under-achieving super funds to gain full control over their investments potentially resulting in greater returns.
A long list of legal contraventions by trustees and funds are to be reported by fund auditors to the tax office as of the 1st of July, 2008, says the Noah Group.
These contraventions include breaching the sole purpose test (that requires for funds to be maintained for the core purpose of providing retirement and death benefits for members), and providing financial assistance to members or their relatives.
Other reportable contraventions to the tax office by newly formed funds include failing to purchase assets on an arm's length basis, borrowing from a SMSF (certain exceptions exist for short-term loans) and exceeding the in-house asset ratio (i.e. funds are not allowed to invest more than 5% of their assets, including fund assets, with related parties).
The tax office is creating the opportunity to stamp out bad habits early by becoming well-equipped in concentrating more efforts on new trustees who are failing to comply with superannuation laws.
When recently surveyed by the tax office, and as highlighted by both the Noah Group and Smart Investing, only 30% of new trustees could explain the sole-purpose test (the most fundamental of all SMSF rules) and a quarter of respondents were unaware of restrictions on the type of assets their funds could acquire.
Understandably these findings have been a rude shock to Minister for Superannuation, Nick Sherry, as well as many senior tax officials.
The Noah Group says that it is very important when using a SMSF to have your Financial Planner and Accountant involved in your investment structure to make sure you do not fall into the trap of not fulfilling you obligations under current taxation acts.

By: Scott P. Paterson

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Brett Marks established the Noah Group in 2000 and has been providing investment guidance for tens of thousands of enterprising Australians to secure their future. By helping them realise the full potential of their assets through investment properties, shares and other investments all proven systems that work together to maximise growth and reduce debt.