Hi, I was just wondering if anyone knows if it's okay for a trustee to charge the running costs of a SMSF that they are a member of back to their SMSF. For example if there are storage fees, or they have to purchase a safe and security system. As these expenses are directly associated to protecting the investment, logic tells me it should be okay to pay for these expenses out of the SMSF trust account. I imagine they would have to minute the decision to do this, and these goods & services would have to be purchased from a unrelated party to meet compliance.
Still pretty new to running a SMSF myself, only thing I have heard other say (hear say) is something about "Arms Length" which I assume is some broad definition within some legislation over SMSFs. I would get professional advice before doing anything as things I thought I couldn't do with my SMSF I actually can and things I thought I could do is actually gray and very risky hence not recommended.
I think it would be ok for the Super Fund to pay storage fees for storage of assets (as long as you don't put non-super assets in with it). A safe would also probably be ok if super fund assets are stored there. A security system for a house you live in - this would probably not be ok. Also, if the safe is at your house and you are using it for things other than assets held in the name of the super fund then also not ok.
With the new legislation you're not even supposed to store SMSF assets in your house. There is a transition period till 2016 for those who currently have SMSF assets in their property. So be very careful about trying to claim those amounts back. You'll probably end up being audited.
