With banks continuing to close branches and forcing customers to use online banking, SMSF auditors have noticed an increase in SMSF withdrawal errors where a trustee mistakenly transfers from their SMSF account instead of their personal bank account.
SMSF assets must be kept separate from members’ personal assets and this mistake will likely result in a reg 4.09A breach. Depending on the circumstances of the breach, it may or may not raise compliance action from the ATO.
Other issues with the separation of assets include insurance policies in the name of only the members, and mistakenly putting the wrong entity as the owner of an SMSF asset.
If the asset is property and the declaration of trust is signed after the purchase, that can trigger double stamp duty.
Make sure you all your paperwork prepared and in order before making any offer on a property you intend your SMSF to invest in. Mistakes can result in unwanted financial consequences. Read more detail here at SMSFAdviser.