DomaCom judgment represents “milestone” for SMSFs
The Full Federal Court handed down its judgment in the appeal by Aussiegolfa (acting as trustee of the Benson Family Superannuation Fund [BFSF]) relating to the DomaCom Fund, finding that there was no breach of the sole purpose test.
The Court held that the primary judge was incorrect in concluding that the leasing of the residential property held by the DomaCom Burwood sub-fund to a child of a member of the BFSF was not a breach of the sole purpose test.
The Court also found that the primary judge was correct to conclude that the units held by Aussiegolfa in the sub-fund constituted an investment in a ‘related trust’ of the BFSF.
DomaCom CEO, Arthur Naoumidis, said DomaCom was pleased to have the court confirm it was not a breach of the sole purpose test.
“We believe that this finding, on its own, represents a milestone for the SMSF industry,” he said.
Naoumidis said in relation to the related trust determination, DomaCom would review the judgment and make a further announcement about the effect of the decision.
“The DomaCom fund disclosure documents have been amended significantly since the Burwood sub-fund was created in 2015,” he said.
“Accordingly, we will analyse the effects of the judgment on sub-funds created using the current version of the DomaCom Fund constitution and disclosure documents. If our analysis determines that it is necessary, we will consider amending our constitution and disclosure documents to address this issue with respect to future sub-funds.”
AUTHOR
Anastasia Santoreneos
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