#9545
Awan Hammad
Participant

    Hi

    Yes the breach of SIS Reg 7.04 is only in relation to the $8,000 that was repaid after the 30 days.

    I agree with the accountant to report the contributions as a liability in the Fund accounts as the Fund was not allowed to receive the contributions and they have to be repaid. The liability is not a “loan” or a “borrowing” and is normally accounted for as a sundry creditor.

    Given the amount of the breach is less than $30,000 there may be no requirement to report the breach via the ACR to the ATO. You should follow the ACR instructions to see if an ACR is required (eg is it a first year Fund?). There may also be an argument that no Part B qualification is required if the breach is not considered material.

    Thanks

    SMSF AAA

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