SMSF Investment Strategy Update 2020

Just a quick reminder / update regarding SMSF.


As you would be aware, the ATO has recently released detailed guidelines on what the Investment strategy of the SMSF should consider.


With the financial year approaching fast, and under the current circumstances in the economic and health fronts, we thought it would be appropriate to remind you of this little issue well before the year end so you can take actions as required.


We attach the link in case you are interested.


In summary, the guidelines require the investment strategy of the fund to be:

–  a lot more detailed with regards to the investment allocation, risk, funds ability to pay pensions and of course whether to hold insurance cover

– The old approach of investment ranges 0% to 100% is no longer a valid approach accepted by the ATO

– The fund’s investments must be in line with the investment strategy. Or a plan must be provided to either update the investment strategy or change the investment portfolio.

– Reviewed at least once in the financial year, this item is quite applicable after the significant events in March 2020 (Covid  19 pandemic)

– Investment strategies that do not comply with the guidelines may create contraventions raised by auditors which may lead to fines for trustees.


SMSF Auditors will be paying particular attention to this item in the 2020 financial year.

And the ATO has stated that auditors are required to raise a contravention if it meets the reporting criteria or if the issue has been raised in a previous year and continues to be unrectified in the current year.


Please feel free to contact us if you have any questions or concerns with regards to the above.


The Team at KARDIA GROUP, Business Advisors


Please note: The information provided does not represent financial advice. It is mere administration orientated

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