Fundamental requirements

Trustees need to ensure that the fund is aware of and in compliance with the fundamental requirements under the SIS Act. We can advise regarding whether a situation or transaction has implications under the sole purpose test or whether a situation has arisen which might put the fund’s status as a complying fund at risk. We can also assist in relation to the rules for when a fund can accept contributions (and what to do if it has accepted one incorrectly), as well as the requirements relating to the payment of benefits.

Related party acquisition rules

Funds are limited in what assets they can acquire from a related party – we can assist in determining whether a proposed acquisition can proceed, or what to do if an asset should not have been acquired.

In-house asset rules

Dealing with related parties in relation to assets owned by a fund can also be an area where a trustee can breach the law, and we can assist in advising how these rules apply and what the trustee can or cannot do.

Non Arms’ Length Income (NALI)

Given the restrictions on contributions coming into a fund and when a member can access their super benefits, the NALI rules are a key compliance tool used by the ATO/APRA to ensure that not only is super preserved until the member retires, but also that access to the concessional tax rate applying to super funds is not abused. Reviewing real or proposed transactions for compliance with these rules is an important and useful way to help your clients keep the nest egg intact for their retirement.

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