To prevent SMSFs falling afoul of the in-house asset provisions when they give related party tenants a rent deferral due of financial hardship caused by COVID-19, the ATO has released a draft legislative instrument. The instrument proposes to provide an in-house asset exemption for an asset that is attributable to the deferral of rental income measures implemented to provide COVID-19 financial relief. SMSFs using this exemption may be required to keep documentation to ensure that the parties continue to deal with each other on an arm’s length basis.

COVID-19 pandemic and associated government policy has provided challenges for the superannuation industry, particularly for trustees to provide appropriate information. ASIC has recently outlined its interim corporate plan, which includes protecting consumers from harm at a time of heightened vulnerability. This includes ensuring that trustees are communicating effectively with members on issues. While ASIC notes that a range of regulatory activities has been postponed, trustees’ compliance and legal obligations remain unchanged.

The due date for the SMSF annual return for some self-managed super funds is fast approaching. Trustees now have less than one month to lodge the return. If you’re the trustee of an SMSF and have already finalised the audit, remember you don’t have to wait until the due date to lodge. The ATO recommends lodging on time as any returns more than 2 weeks late will result in the status of the SMSF on Super Fund Lookup to be changed to “Regulation details removed” and impact on super guarantee payments made to the fund.