The ATO has released guidance for trustees around the formation of an investment strategy for SMSFs, confirming that specifying asset ranges of zero to 100 per cent within the investment strategy document is “not a valid strategy”.

In the guidance, released on the ATO website this week, the regulator said an SMSF’s investment strategy should be “your plan for making, holding and realising assets consistent with your investment objectives and retirement goals”.

“It should set out why and how you’ve chosen to invest your retirement benefits in order to meet these goals. The superannuation laws require that you must prepare and implement an investment strategy for your self-managed super fund (SMSF) which you must then give effect to and review regularly,” the regulator said.

The guidance specified that an investment strategy “should be in writing”, and should be “tailored and specific to the relevant circumstances of your fund rather than a document which just repeats the words in the legislation”.

“When formulating your investment strategy, it is not a valid approach to merely specify investment ranges of zero to 100 per cent for each class of investment. You also need to articulate how you plan to invest your super or why you require broad ranges to achieve your investment goals to satisfy the investment strategy requirements,” the ATO said.

To learn more about this recent guidance speak to one of the Superannuation experts at Brown Macaulay & Warren, contact us today.

Subscribe To Our Newsletter

Join our Mailing List to keep up to date with all our latest news and tips.

You have Successfully Subscribed!