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Michael Kulas

Apr 26, 2022

SMSF BRP lease requirements

in SMSF Technical Forum

Hi all,

I completed a 2020 audit previously where a new lease for a commercial property (to an unrelated party) had the individual trustees as the landlord but did not mention the SMSF. I wrote in the 2020 management letter requesting that the lease be updated to include ATF SMSF as the landlord for future years. The solicitor for the SMSF has advised that this is entirely unnecessary and refuses to amend the lease but instead advised the accountants to include in the working papers provided to me a copy of the contract of sale showing the property was purchased by the trustees ATF SMSF. He has said that unless it is a contravention of SMSF legislation he will not make any changes to the lease.

Does anyone know of particular requirements/legislation so this change can be made? Must this change be made at all from a SIS point of view? I feel as though a tenant has the right to know the entity that is their landlord as a matter of disclosure but am not entirely sure of the legislative requirements.

Thank you in advance

2 answers1 reply

Comments (3)

THE AUDITORS INSTITUTE

Apr 28, 2022

Hi Michael

Thanks, I spoke to a property manager based in Victoria today & he said from a legal perspective his view is no requirement to put name of the Fund on the lease agreement. He said he normally just puts the trustee company on the lease agreement & would normally only refer to the Fund in the agreement if he has been specifically requested to do so.

Thanks

SMSF AAA