Good news from ATO
Westpac Funds Management (Westpac FM) has received breakthrough advice from the Australian Taxation Office (ATO) on the status of its Westpac Office Trust (WOT) instalment receipts in the context of self-managed superannuation funds.
Westpac FM has announced to the Australian Securities Exchange that the ATO has advised that the instalment receipts do not contravene the borrowing restrictions for self-managed superannuation funds.
The announcement follows on from WOT having announced in early July that it had been made aware that the ATO had adopted a view concerning the interpretation of the borrowing restrictions in the Superannuation Industry (Supervision) Act (SIS Act) that might have had adverse consequences for regulated superannuation funds that are holding instalment receipts for WOT units.
It said however that the ATO had since advised WOT that it considered a regulated self-managed superannuation fund that has investments in WOT instalment receipts does not ‘borrow money’ or ‘maintain an existing borrowing of money’ for the purposes of the SIS Act.
The announcement said that the ATO had also confirmed that it was reviewing all compliance action that had been taken against self-managed superannuation funds that had invested in WOT and would directly contact trustees of affected self-managed superannuation funds.
AUTHOR
Mike Taylor
Recommended for you
Licensee Centrepoint Alliance has completed the acquisition of Brighter Super’s annual review service advice book, via Financial Advice Matters.
ASIC has launched court proceedings against the responsible entity of three managed investment schemes with around 600 retail investors.
There is a gap in the market for Australian advisers to help individuals with succession planning as the country has been noted by Capital Group for being overly “hands off” around inheritances.
ASIC has cancelled the AFSL of an advice firm associated with Shield and First Guardian collapses, and permanently banned its responsible manager.
