Fractional investment platform DomaCom has been integrated with self-managed super fund (SMSF) administration platform Simple Fund 360 from BGL Corporate Solutions.
BGL had implemented a data interface with DomaCom which would allow over 200,000 SMSFs to use the DomaCom fund.
Following the integration, SMSF accountants were now able to receive an automated transactional data feed into their Simple Fund 360 software from the DomaCom platform.
The integration with BGL was a major milestone for DomaCom that built upon the Australian Tax Office (ATO) ruling on downsizer contributions last year.
The ATO’s Administrative Binding Advice confirmed part disposal of a home for downsizer contributions, which meant that a person could dispose of part of their home under DomaCom’s Senior Equity Release platform and still be eligible to make a downsizer contribution.
The ability to contribute the proceeds of downsizing part of a home into superannuation was one of several measures announced in the 2017-2018 Budget to reduce pressure on housing affordability in Australia.
From 1 July, 2018, eligible people aged 65 or over had been able to make a downsizer contribution into their superannuation of up to $300,000 from the proceeds of selling all or part of their home.
As downsizer contributions were not subject to the usual concessional or non-concessional contribution caps, they can still be made when a member’s balance exceeds $1.6 million.
The ATO confirmation on part disposal now meant that SMSF retirees could use DomaCom’s Senior Equity Release platform to sell a part interest in their home and make a downsizer contribution without having to move out of their home.
While a residential property cannot be sold to an SMSF, a part interest of a home can be sold to DomaCom’s Senior Equity Release platform which provides cash to the member that they were legally able to contribute to their SMSF.
Arthur Naoumidis, DomaCom chief executive, said the ability for retirees to support themselves by modifying their personal balance sheets and moving financial resources tied up in their homes to their super funds would enable them to enjoy a better retirement.
“Thanks to our partnership with BGL, they will be able to do this with the knowledge that their accountants can efficiently administer their SMSFs,” Naoumidis said.
Ron Lesh, BGL managing director, said: “BGL has been at the forefront of innovation in the delivery of SMSF administration solutions since 1997 and I am pleased to welcome DomaCom to the BGL family to help our clients support their self-funded retirees.”