Explanation Of The Sole Purpose Test Online
The Self Managed Super Fund (SMSF) is one of the most effective and fastest growing type of superannuation funds in Australia because it provides many benefits and a power to control and manage own finance. SMSF offers flexibility by allowing you to invest in other assets like properties, direct shares and many other valuable assets that may not be available with other types of superannuation funds. Therefore, the decision to set up an SMSF may be one of the most important decisions you will ever have to make. However, setting up an SMSF requires close attention and consideration because if you do not get it right, it can negatively affect your financial budget. Setting up a SMSF requires skills and knowledge to run the fund properly and successfully.
The best information you can get about setting up a SMSF and how to manage it, is to visit the official website of Australian Taxation Office (ATO) at www.ato.gov.au. One of the most important things you will learn from ATO regarding SMSF is how to choose the right investment strategy, what to invest in, how to control your SMSF and a little more information about SMSF sole purpose test, something you surely do not know much.
SMSF sole purpose test ensures that a superannuation fund will be set up and maintained properly and for serve to provide benefits to its members upon their retirement (or to named dependents, if a member dies before retirement). Your fund needs to meet the sole purpose test SMSF rules in order to be eligible for available tax concessions. If you or any other member directly or indirectly gets a financial benefit when making investment arrangements and decisions, your fund will not meet the sole purpose test SMSF rules.
The most typical breaches of the SMSF sole purpose test are:
- Investments that provide advantages to SMSF member or associate prior to retirement;
- Giving benefit or financial help to someone prior to retirement
Not complying with the sole purpose test SMSF rules is extremely serious and can lead to huge penalties and even lawsuit. You can find detailed info about SMSF sole purpose test at ATO website. Also, there are numerous reliable advisers online like www.smsfwarehouse.com.au, where you can get informed about sole purpose test SMSF requirements and ensure you are in compliance with ATO regulations.