- March 3, 2011
- Technically Speaking
- Investment standards
Recently SPAA sought clarification from the ATO about whether a SMSF can purchase units in a pre-99 unit trust without those units being classified as an in-house asset. Specifically, the question raised by SPAA was as follows:
A SMSF held units in a related geared unit trust as at 11 August 1999 which have been excluded from the fund’s in-house assets under section 71A of the Superannuation Industry (Supervision) Act 1993 (the SIS Act). On or after 28 June 2000 the unit trust satisfies the requirements of Division 13.3A of the SIS Regulations and on or after satisfying these requirements the SMSF acquires additional units in the unit trust which are not covered by the provisions of section 71D or 71E of the SIS Act. Will the purchase of the additional units constitute an in-house asset in the fund?
The contents of this resource are taken to be correct at the time of publication.
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