The tax office explained that people are being encouraged to set up an SMSF or roll over their super to access a specific investment opportunity. And as an SMSF is a long-term retirement structure, it should support retirement goals, not just investment opportunities.
It added that if the main reason a person is being encouraged to set up an SMSF is to invest in one property, cryptocurrency or another investment opportunity, they should stop and obtain advice.
“Someone may approach you with an investment opportunity and suggest setting up an SMSF or rolling over your super [as] the best way to access it,” the ATO said.
ASIC has recently expanded its list of known businesses collecting personal details through online ads and forms. These details can lead to people being contacted about financial products, investments or SMSF arrangements.
They may describe it as exclusive, urgent or likely to deliver high returns. They may pressure people to act quickly or move their super before they have had time to properly consider the risks.
Before making any decisions, the tax office said people should consider first why they are being encouraged to set up or roll over to an SMSF and whether they understand what managing an SMSF involves.
They should also check whether the person or business is registered to give this advice and consider speaking to someone independent who is not connected to the investment.
“It’s okay to slow down, ask questions or step back from an arrangement if something does not feel right,” the ATO said.
“As an SMSF trustee, you are responsible for your fund’s decisions and making sure it complies with the law. Your SMSF must support your retirement, not just one investment opportunity. Before you commit, make sure you understand both the investment and the SMSF structure.”
