I get calls from people frequently who mistakenly believe that their SMSF can provide them with a loan or they can access their super whenever they like. This is not the case!
I have seen people with small businesses who get in short-term cash flow problems and think they can dip in to their SMSF to fund the business over the hard time. This is the most common breach of SMSF rules and the ATO is clamping down very hard on those who contravene the rules.
- Your SMSF can’t lend money or provide financial assistance to a member or a member’s relative.
- Investments by the trustees in arrangements which involve the members themselves, or related parties, are restricted, and more often than not, are NOT ALLOWED.
Watch this video from the ATO for more information.
Superannuation is meant to be the sole Purpose of providing Retirement Income to the members not support for their business. Too often that initial dip leads to larger withdrawals and a downward spiral. Remember if your business is in trouble then your Superannuation maybe the only asset actually protected in the event of Bankruptcy so don’t dip in!
Are you looking for an advisor that will keep you up to date and provide guidance and tips like in this blog? Then why now contact me at our Castle Hill or Windsor office in Northwest Sydney to arrange a one on one consultation. Just click the Schedule Now button up on the left to find the appointment options.
Liam Shorte B.Bus SSA™ AFP
Financial Planner & SMSF Specialist Advisor™
Tel: 02 98941844, Mobile: 0413 936 299
PO Box 6002 BHBC, Baulkham Hills NSW 2153
5/15 Terminus St. Castle Hill NSW 2154
Corporate Authorised Representative of Magnitude Group Pty Ltd ABN 54 086 266 202, AFSL 221557
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