Can you advise whether it is legal according to ATO rules for me to invest a small proportion of my SMSF money into the purchase of an ATM? Please note that I am not asking for your advice as to whether this is a good investment or notI (I have done good research). I would just like to know the rules.
A: Thanks for the question.
There is absolutely no problem with your SMSF owning an ATM. This is perfectly legal.
You have done your own research, which is great. That said, the two comments I would make are:
a) the investment should be consistent with your Fund’s written Investment Strategy document. If you haven’t updated the document, I suggest you do this and the Trustees formally adopt the new strategy, which will specifically permit investment in an ATM; and
b) as an investment in an ATM will be relatively illiquid, you should be mindful of this lack of liquidity in considering how much to invest and how this fits with any potential liabilities of the Fund.