The ATO has released a legislative instrument determination addressing the issue of rent relief deferrals granted by SMSF landlords to related-party tenants in response to coronavirus-related financial hardship.
Following ATO risk and strategy director Kellie Grant’s confirmation last week that a legislative instrument was imminent that would also address how COVID-19 rent relief deferrals would be considered from an in-house assets perspective, the ATO announced SPR 2020/2 Self-Managed Superannuation Funds (COVID-19 Rental income deferrals – In-house Asset Exclusion) Determination had been registered and would take effect from 27 November.
“The determination does not apply to rental waivers or reductions as this type of relief does not give rise to an in-house asset in the fund,” the ATO stated in an update on its website.
“However, we have previously said that we won’t be taking any compliance action for the 2019/20 and 2020/21 financial years if an SMSF gives a tenant, even one who is also a related party, a temporary rent reduction or waiver because of the financial effects of COVID-19 during this period.”
In a separate update on its website, the regulator also reminded trustees they would need to use SuperStream for all rollovers of superannuation to and from their SMSF from 1 October 2021.
“There will be some changes for SMSFs due to measures announced by the government in 2019,” it said.
“These changes will impact your SMSF if your members want to roll over funds to your SMSF, such as transferring money from any other super fund to your SMSF; roll over funds from your SMSF, which includes when you are winding up your SMSF; and receive and action certain release authorities, including the First Home Super Saver Scheme, more quickly via SuperStream.”
In order to use SuperStream, trustees would need an electronic service address and an Australian business number, and would need to ensure their SMSF details, including the fund’s bank account, were up to date, including their SMSF’s bank account, it added.
“Given the digital nature of these transactions, you may also consider appointing professionals to help you,” it said.