Names On Investments - Corporate Trustee
The superannuation law requires trustees to ensure that super fund assets are clearly distinguished from assets owned by the trustee in its own right. The simple way to comply with this requirement is to arrange all investments in the names of the trustee, as trustee of the fund. As different investment managers and statutory bodies often have different registration processes, some common examples of both correct and incorrect investment recordings are given below.
EXAMPLE 1 – ABC Pty Ltd, trustee of Allied Superannuation Fund
| CORRECT | INCORRECT | |
|---|---|---|
| Bank Account | ABC Pty Ltd as trustee for Allied Superannuation Fund | ABC Pty Ltd |
| Investment Property | ABC Pty Ltd as trustee for Allied Superannuation Fund | ABC Pty Ltd |
| Investment Property | ABC Pty Ltd as trustee under instrument | ABC Pty Ltd |
| Shares | ABC Pty Ltd <Allied Superannuation Fund A/C> | ABC Pty Ltd |
| Managed Funds | ABC Pty Ltd <Allied Superannuation Fund A/C> | ABC Pty Ltd |
| Managed Funds | ABC Pty Ltd ATF Allied Superannuation Fund | ABC Pty Ltd |
Abbreviations are quite acceptable, provided the ownership remains clear.
This area is one where the ATO is very insistent that the names are correct. That means correct on EVERY bank account and EVERY investment. Failure to do so will result in an audit qualification on the tax return and lodgment of an Audit Contravention Report by the auditor.
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