The ATO seem to want to take a dim view of trustees who ‘trade’ shares within the SMSF format.
This, I believe, is because of the tax advantaged situation, especially in pension format.
What constitutes a ‘share trading’ situation?
I believe they recognise a trustees right to review investments for peak performance but the ‘share trading’ issue seems to be gaining strength!
A: Super funds are specifically banned from being a ‘share trader’ for tax purposes. As pension funds don’t pay tax this is not really relevant.
Whatever you buy and sell in your super fund, you should make sure that your trust deed and investment strategy are consistent and that you keep all relevant transaction records including trustee minutes.
