SMSF Adviser was made aware of several complaints stemming from the new SMSF registration rules introduced in January
As a result, the ATO has issued new guidance for those new funds that hit roadblocks where members are retired.
“If you expect to receive a rollover, transfer or contributions in the near future, an SMSF can be established with a nominal amount (for example $10). Once an ABN is issued, a bank account can be opened and the $10 deposited. The $10 is regarded as a contribution and allocated to a member,” the ATO stated.
“Where a member cannot contribute to the SMSF (for example, they are 65 or over or do not meet the work test) we can apply an administrative discretion to allow this nominal contribution. In all cases the nominal contribution must be allocated to the member solely for the purpose of registering the SMSF,” the ATO said.
“The member must receive further money into the SMSF (such as a roll-over) before the end of the income year the fund was established.”