RENT RELIEF extended by ATO for SMSFs for 2021-22


SMSF Rent Relief

Extended COVID Rent Relief for 2021/22

Having asked the SMSF Association to reach out to the ATO and see if they were willing to extend the Rent Relief for the current financial year, I was please with the ATO initial response that they were already considering it and now they have extended the relief for the year which will help many struggling businesses and allow SMSF trustees to support good long term tenants including Related Party tenants.

In their latest update on the subject the ATO said that COVID-19 continues to have a significant financial effect on SMSFs, particularly in some states or territories where there are re-occurring and prolonged lockdown periods.

“As a result, you may still find yourself in a position where you (in your role as trustee), or a related party of the fund, are having to provide or accept certain types of relief, which may give rise to contraventions under the super laws,” the ATO said.

Copy of full statement here

So you still need to have the proper documentation, on commercial terms. But if you do that then if the rental or loan repayment relief involving an SMSF, related non-geared company or unit trust, or a related tenant in the form of a reduction, waiver, or deferral gives rise to a contravention of the super laws, the ATO will not take any compliance action against the fund.

I have outlined the process for dealing with the paperwork to put this in place in a previous article COVID-19 Providing rental relief for the tenant in an SMSF property

Looking for an adviser 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.

Please consider passing on this article to family or friends or your tax agent! Pay it forward!

Liam Shorte B.Bus SSA™ AFP

Financial Planner & SMSF Specialist Advisor™

SMSF Specialist Adviser
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Verante Financial Planning

Tel: 02 98941844, Mobile: 0413 936 299

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This information has been prepared without taking account of your objectives, financial situation or needs. Because of this you should, before acting on this information, consider its appropriateness, having regard to your objectives, financial situation and needs. This website provides an overview or summary only and it should not be considered a comprehensive statement on any matter or relied upon as such.

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