A Matter of Trusts
Taxation in Australia Journal
Regulation 13.22C unit trusts are an important structuring option for self-managed superannuation fund investments. However, is the administrative burden worth it?
The ability for self-managed superannuation funds (SMSFs) to make investments via private unit trusts and companies has always been somewhat of a minefield. Amidst the ever-changing superannuation laws and the ATO’s recent interpretation of the non-arm’s length income rules, it has become more and more difficult to be able to make investments via the use of an SMSF. This may act as a deterrent for some, however the tax advantage of investing via an SMSF has to be weighed up against the administrative costs and complexity.
The use of a unit trust that satisfies reg 13.22C of the Superannuation Industry (Supervision) Regulations 1994 (Cth) (SISR) is a case in point. While such structures have always been a useful investment vehicle for SMSFs, they come with a high level of complexity and administration. This article will examine the requirements that a unit trust must satisfy under reg 13.22C (in this article, such a unit trust is referred to as a reg 13.22C unit trust).
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