ATO announces SMSF rent relief measures

The ATO will not take action where an SMSF gives a temporary rent reduction to a tenant during coronavirus restrictions.

Temporarily reducing rent

The ATO has announced they will be taking no action in situations where an SMSF, which owns a business premise that is being leased to a related party, reduces the rent for the 2019/20 and 2020/21 financial years.

ATO Temporarily reducing rentQuestion

My SMSF owns real property and wants to give my tenant – who is a related party – a reduction in rent because of the financial impacts of the COVID-19. Charging a related party a price that is less than market value is usually a contravention. Given the impacts of the COVID-19, will the ATO take action if I do this?

Answer

Some landlords are giving their tenants a reduction in or waiver of rent because of the financial impacts of the COVID-19 and we understand that you may wish to do so as well. Our compliance approach for the 2019–20 and 2020–21 financial years is that we will not take action where an SMSF gives a tenant – who is also a related party – a temporary rent reduction during this period.

Need more information?

If you have further questions in respect to your particular circumstances, please contact the award-winning team at Intuitive Super on 1300 856 064.

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Source ATO

Last Updated:28-05-2020 11:57