The ATO has announced that their compliance approach for the 2019-20, 2020-21 and 2021-22 financial years is that they will not take compliance action if a SMSF gives a tenant (even if a related party to the fund) a temporary rent reduction, waiver or deferral because of financial effects of COVID-19 provided the relief is offered on commercial terms (having regard to State and Territory COVID-19 support measures) and is property documented.

This information/checklist has been prepared as a reference material for SMSF trustees and to highlight the importance of ensuring any rent relief is on arm’s length commercial terms in order to meet the key compliance requirements. 

The information provided is for your consideration only and is provided to assist you in deciding whether you require a formal opinion on the issue.  These comments cannot be relied upon as legal advice by either you or any of your clients.