Some SMSFs will find it more valuable to be considered a wholesale client or sophisticated investor rather than a retail investor, but advisers must familiarise themselves with the associated law and relevant tests, according to a specialist industry lawyer.

SMSF trustees are often unaware that if they move overseas for an extended period of time, their SMSF may fall foul of the ATO’s residency rules and they may face a heavy tax bill.

Changing an SMSF from an individual trustee to a corporate trustee structure requires accuracy as mistakes could come back to hit advisers, an industry solicitor has warned.

A lawyer has warned SMSFs using reserves that do not adhere to the sole purpose test to the letter may fall foul of the rules and fail the test as indicated by a recent court case.

Advisers and their SMSF clients need to be mindful of some of the wider tax planning implications of the federal government’s downsizing measure, according to a specialist industry lawyer.

The different rules governing the transfer balance account report (TBAR) for SMSFs compared with Australian Prudential Regulation Authority (APRA)-regulated super funds may easily lead to attracting an excess transfer balance cap determination and the associated tax penalty, a technical expert has warned.

Complying with the licensing regime now applying to accountants wanting to service SMSF clients with financial advisory services has not been the largest hurdle for these practitioners to successfully transition their businesses, a specialist licensing consultant has said.