ATO clears way for SMSF DomaCom investment
The Australian Tax Office (ATO) has decided that self-managed superannuation fund (SMSF) trustees may invest in family property via the fractional property investment fund, DomaCom.
The ATO stated in its opinion that this would not contravene the SIS Act provided the SMSF and related parties acquired less than 50 per cent of the units in the sub-fund created after a successful public book build and the property was not acquired from a related party.
DomaCom said it was continuing discussions with the ATO to raise the 50 per cent limit to 100 per cent but the company stressed that even at 50 per cent "it was a game changer".
DomaCom chief executive, Arthur Naoumidis, went on to explain that they believed the limit would be increased over time as the housing affordability issue could only "get bigger".
"For DomaCom, now in the middle of an IPO, this is a critical opinion from the ATO. We believe it is a very significant development that will drive growth in the company," he said.
"For the first time, SMSF members can use some of their super money to invest in a property jointly with their children to help them acquire a house to live in.
"What is important at this juncture is that the government recognises that there are commercial solutions to the issue of the housing funding for those looking to buy property.
"Unlike some overseas models, where money is released from the pension to help people acquire their first property, this Australian innovation keeps the asset within the superannuation environment."
AUTHOR
Oksana Patron
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