ATO Interpretative Decision

ATO ID 2002/434 (Withdrawn)

Superannuation

Retirement income entities: Definition of standard employer-sponsor
FOI status: may be released

This ATOID is being withdrawn as it is superseded by Self Managed Superannuation Funds Ruling SMSFR 2009/4

This document incorporates revisions made since original publication. View its history and amending notices, if applicable.

CAUTION: This is an edited and summarised record of a Tax Office decision. This record is not published as a form of advice. It is being made available for your inspection to meet FOI requirements, because it may be used by an officer in making another decision.

This ATOID provides you with the following level of protection:

If you reasonably apply this decision in good faith to your own circumstances (which are not materially different from those described in the decision), and the decision is later found to be incorrect you will not be liable to pay any penalty or interest. However, you will be required to pay any underpaid tax (or repay any over-claimed credit, grant or benefit), provided the time limits under the law allow it. If you do intend to apply this decision to your own circumstances, you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed. You may wish to obtain further advice from the Tax Office or from a professional adviser.

Issue

Is a particular company a standard employer-sponsor of the self managed superannuation fund in accordance with subsection 16(2) of the Superannuation Industry (Supervision) Act 1993 (SISA)?

Decision

No, the company does not meet the definition of a standard employer-sponsor under subsection 16(2) of the SISA as the company does not provide superannuation contributions to the superannuation fund pursuant to an arrangement between the trustee and the employer.

Facts

The trustee of a self managed superannuation fund (SMSF) was an employee of a public company. The trustee did not hold a position as a director in the company.

There was an arrangement between the trustee in their capacity as an employee and the public company as the employer to have the superannuation guarantee contributions placed into the SMSF. The trustee of the SMSF states that he/she was not acting in his/her capacity as trustee when requesting this, but as an employee. The SMSF purchased convertible notes from the public company.

Reasons for Decision

An employer-sponsor under subsection 16(1) of the SISA is an employer who contributes to the superannuation fund for the benefit of a member. A standard employer-sponsor under subsection 16(2) of the SISA is an employer that contributes pursuant to an arrangement between the trustee of the superannuation fund and the employer-sponsor. The only arrangement that was entered into between the public company and the trustee consisted of an arrangement between an employee and their employer in relation to the depositing of superannuation guarantee contributions. The trustee was not acting in his/her role as the trustee of the SMSF, but in their capacity as an employee. Therefore, the public company is not a standard-employer sponsor.

Date of decision: 8 May 2001

Legislative References:
Superannuation Industry (Supervision) Act 1993
section 16

Keywords
Self managed superannuation funds
SMSF trustee

Business Line: Superannuation

Date of publication: 17 April 2002

ISSN: 1445-2782

history

	Date:	Version:
	8 May 2001	Original statement
You are here	14 August 2009	Archived

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