Advanced Superannuation And Retirement Planning Case Study 2022

Running head: ADVANCED SUPERANNUATION AND RETIREMENT PLANNING
Advanced Superannuation and Retirement Planning
Name of the Student:
Name of the University:
Author’s Note

ADVANCED SUPERANNUATION AND RETIREMENT PLANNING
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Table of Contents
Introduction......................................................................................................................................2
Discussion........................................................................................................................................3
Case 2: Australian Securities and Investments Commission v Australian Lending Centre Pty
Ltd (No 3) [2012] FCA 43...........................................................................................................5
Case 3 Deputy Commissioner of Taxation v Rodriguez [2016] FCA 860..................................6
Comparison of the Cases.............................................................................................................7
Conclusion.......................................................................................................................................9
Reference.......................................................................................................................................10

ADVANCED SUPERANNUATION AND RETIREMENT PLANNING
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Introduction
The main focus of the assessment is to ascertain the cases where there has been a breach
of sole purpose tests which has affected the fund management process of a Superannuation fund.
The sole purpose test is a serious test which is followed in maintenance of Superannuation fund
which states that the benefits associated with superannuation fund should be derived by
individuals upon his retirement or his family members in case of death before retirement. It is
considered to be a breach of Sole Purpose test if anyone derives financial benefits when making
investment decisions or other arrangement relating to the superannuation fund1. The discussion
would be dealing with cases where there is a breach of Sole purpose test by the trustee and would
also be discussing the consequence associated with the same. In addition to this, the discussion
would also be including comparison between the legal impact in all the three cases of breach of
sole purpose test. The cases laws would also be showing the verdict which as given by the court
in each case considering the situation and the breach. Further the discussion would also be
showing the tax liabilities and the civil penalties which would be applicable to the trustee for
such a breach.
Discussion
Case 1: Aussiegolfa Pty Ltd (Trustee) v Commissioner of Taxation [2018] FCAFC 122
As per the case, Aussiegolfa Pty Ltd was a trustee of the Benson Family Superannuation
fund for which Mr. Benson was the sole member. The funds which was accumulated from Mr.
Benson’s mother and the superannuation fund of Mr. Benson’s sister and her partner all invested
1 Barnet Jade - Find Recent Australian Legal Decisions, Judgments, Case Summaries For Legal Professionals
(Judgments And Decisions Enhanced)". 2019. Jade.Io. Accessed September 11 2019.

ADVANCED SUPERANNUATION AND RETIREMENT PLANNING
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their funds in DomaCom Fund which was a unit trust and handled investment scheme. The
DomaCom Fund was a special unit trust and the same invested the funds in development of
residential properties so that the business can generate revenue from the same. The money which
was accumulated by DomaCom Fund was used to purchase the property in Burwood. This
property was later leased to Student Housing Australia2. The Student Housing Australia rented
the property to three tenant, two of which was not connected to Mr. Benson. The property was
handed to Student Housing Australia in order to ensure that the property was rented out to
students so that some revenue can be generated from the same. One of the tenant to the property
was Mr. Benson’s daughter and she had to pay the same rent as other tenants at arm’s length
price.
The position which was previously held by the federal court was that:
 The property which was held by DomaCom Fund was an in- house asset
 The court also stated that the trustee had breached the sole purpose test when he had
made an investment for collateral purpose of providing accommodation to the daughter of
the members of the fund3.
Therefore, there was a breach of the sole purpose test which affect the fund management
system and the reason for the breach of the sole purpose test was the renting of the property to
the daughter of the member of the fund. The court was of the opinion that as soon as the property
was rented to the daughter of the member of the super fund, the sole purpose provision was
2 "Legal Database". 2019. Ato.Gov.Au. Accessed September 11 2019. https://www.ato.gov.au/law/view/document?
DocID=LIT/ICD/VID54of2018/00001.
3 "SMSF: The Sole Purpose Test After Aussiegolfa | HLB Mann Judd %". 2018. HLB Mann Judd. Accessed
September 11 2019. https://www.hlb.com.au/smsf-the-sole-purpose-test-after-aussiegolfa-hlb-mann-judd/.