Superannuation Funds With Unpaid Trust Distributions

Dated: December 2009

Where a self managed superannuation fund holds an interest in a related trust, and is presently entitled to a distribution from that trust, the Australian Tax Office may become very interested in looking more closely at that arrangement

This is particularly so where the trust does not actually pay the distribution to the super fund, and the super fund does not take reasonable action to seek payment of the amount owed to it.

In this situation, it is indicated that breaches of the laws governing superannuation funds, including those associated with in-house assets, may occur.

For more information, refer to public ruling SMSFR 2009/3 on the ATO website.