| 02 9982 2466

SMSF must pay full interest amount

In regards to related party loans, Self-managed super funds (SMSF) must pay the full interest amount,  despite  the rate charged or risk having the expense treated as a contribution.

If the below market rates of interest could be charged on related party loans to SMSFs it’s just that the agreed rate of interest had to be paid.  For example, the related party loan is at 6 per cent, the trustee must pay 6 per cent interest.

In other superannuation news the Federal Government has enacted the regulation allowing certain excess contributions to be refunded to fund members.

Under the new rules announced in the 2012 budget a breach of the concessional contributions caps of up to $10,000 may be refunded to eligible individuals.

Posted on 20 August '12 by , under Business.

Leave a Comment

You must be logged in to post a comment.

Join Our Mailing List!

Subscribe to our mailing list to receive all the latest financial newsletter updates as well as information on important dates on our business calendar.

Recent Updates

Firm News

Amnesty means that 24,000 businesses own up to underpaying Aussies superannuation

An amnesty scheme which ended earlier this month has caused around 24,000 businesses to admit to underpayment of their worker's super. A total of 588 million dollars will be distributed to almost 400,00 individuals.

The scheme, which covered payments from the introduction of super in 1992, gave employers the opportunity to come clean without any consequences as long as they paid the unpaid super as well as 10% interest for every year the money was overdue.

The ATO will be directing its attention at any businesses that did not admit fault and these businesses will face severe penalties.

Many individuals are looking to access their superannuation early in order to have support during these times. Although there is criticism of early access to super, this facility has been helpful to many families to keep afloat.

Business Calender