ATO clears path for SMSF DomaCom investment
The Australian Tax Office (ATO) has made a decision which allows trustees of self-managed superannuation funds (SMSF) to invest in family property via the factional property investment fund, DomaCom.
The ATO stated in its opinion that this would not contravene the SIS Act provided the SMSF and related parties acquired less than 50 percent of the units in the sub-fund created after a successful public book build and the property was not acquired from a related party. DomaCom chief executive, Arthur Naoumidis, went on to explain that they believed the limit would be increased over time as the housing affordability issue could only “get bigger”. “For the first time, SMSF members can use some of their super money to invest in a property jointly with their children to help them acquire a house to live in. What is important at this stage is that the Federal government recognises that there are commercial solutions to the issue of the housing funding for those looking to buy property.” “Unlike some overseas models, where money is released from the pension to help people acquire their first property, this Australian innovation keeps the asset within the superannuation environment.”