24/04/2026
SMSF trustee disqualified for sole purpose test breach
The ART affirmed the ATO's decision to disqualify the applicant from acting as a responsible officer of the corporate trustee of an SMSF, finding contraventions of the sole purpose test (ss 62 and 35D of the SIS Act). While one purpose of the loan was to generate a return for the fund, a concurrent and improper purpose was to provide finance to Mr M's related company to complete a villa project.
The ART also decided the trustee contravened s 35D of the SIS Act by failing to lodge returns for four years and Mr M's excuses regarding difficulties with his accountants were not accepted. The ART was not satisfied a contravention of s 65 of the SIS Act (financial assistance to a member) was established. (Maietta and FCT, ART, Harrowell SM, 9 April 2026.)