Ordinarily, managing an SMSF to ensure it doesn’t breach any of the rules is complex. Add the uncertainty created by a global pandemic and it’s never been more important to understand what relief, if any, your fund may qualify for in 2021-22 and what evidence your auditor will need to see to ensure that no contravention is reported to the ATO.
Given the ongoing effects of COVID-19, the ATO recently confirmed that it would extend some of the relief measures that were previously granted for the 2019-20 and 2020-21 financial years. The types of relief that have been extended to the 2021-22 financial year for SMSFs, are outlined below and are particularly important when dealing with transactions that involve related parties.
These measures include:
- Rental relief
- Loan repayment relief
- In-house asset relief
- Minimum pension drawdowns – 50% reduction
- SMSF residency relief
1. Rental relief
If your SMSF owns a property and has a tenant in financial distress due to COVID-19, the ATO has extended its relief to allow SMSF landlords to continue to provide rent relief in 2021-22.
The ATO has confirmed that they will not take action where an SMSF gives a tenant – who may also be a related party – rent relief, provided that any reduction, waiver, or deferral of rent is only temporary and appropriate, given the pandemic.
As trustee, this means you will need to:
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