DomaCom seeks Federal Court declaration
Fractional investment fund manager DomaCom is seeking a ruling from the Federal Court which states that DomaCom sub-funds are not in-house assets or related trusts for the purposes of the SIS Act.
In an ASX statement released yesterday, DomaCom said the ruling would confirm that SMSFs can invest in property sub-funds where the tenant of the underlying property is a related party of the SMSF.
The statement said that the subsidiary of fractional investment fund manager DomaCom, DomaCom Australia Limited is “supporting an action in the Federal Court for a declaration that DomaCom sub-funds are not in-house assets or related trusts for the purposes of the SIS (Superannuation Industry Supervision) Act”.
DomaCom chief executive officer Arthur Naoumidis said the ability to use superannuation to help people into a home is “clearly a topical issue in Australia” and it is his belief that the DomaCom Fund can play a key role in “solving this issue whilst still protecting the assets of the SMSF”.
“The unique arm’s length structure of the DomaCom Fund protects the SMSF assets whilst generating commercial rates of income and capital return that the underlying residential property delivers,” Mr Naoumidis said.
“Residential property can be used as an anchor asset class for the superannuation portfolios of Gen X/Y investors which can then expand to other asset classes later in life. The Gen X/Y investors can then rent the property and acquire more of the interest in the related sub-fund as time goes on.”