ATO eyeing post-reform super tax tactics, big 4 warns

Accountants should be mindful that the ATO will be closely monitoring additional SMSFs that are set up for clients, which is a strategy some are implementing to circumvent the new segregation rules.

PwC director of private clients Liz Westover said practitioners or trustees who are thinking about setting up two SMSFs essentially to try and circumvent the segregation rules should be very careful about the decision-making process around that.

This isn’t to say a trustee can’t set up two funds, she said, but there must be other reasons as to why they’re doing that.

“If you are doing it purely for tax purposes, you might have a part 4A issue,” said Ms Westover.

“So don’t set up two funds to try and have one $1.6 million pension account and one other account,” she said.

“If it’s purely for tax you might have a part 4A, and the Tax Office will be looking at you.”


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