The sole purpose test – a new way to answer an old SMSF problem
Home > Money With Melanie > Superannuation
07 / Nov / 2013
The sole purpose test provides that super fund trustees must ensure that the fund is maintained for certain purposes, and that these purposes will provide retirement benefits.
Sometimes it can be difficult to be clear about whether decisions you make within your self managed super fund would pass the sole purpose test. A recent article from DBA Lawyers, somewhat controversially, argues that so long as care is taken to ensure that dealings are at arm’s length there is a strong chance the sole purpose test will be passed…..even if you’ve decided to invest in a lovely little chalet in Switzerland.
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