Question 1
Excess non-concessional contributions tax is payable by the member,
however?
Select one:
the tax can be paid by the fund directly to the ATO.
the tax must be paid by the member from personal savings.
the fund is unable to release money to pay the assessment.
the tax must be paid from the fund directly to the member.
1/43
Question 2
The contribution of a promissory note to an SMSF by a member would?
Select one:
breach the investment rules if it was acquired from a related party of the
fund.
not breach the investment rules if it was acquired from a related party of the
fund as long as it is not a commodity in its own right.
not breach the investment rules if the note is issued at a discount from its
face value with the face value payable to the payee or bearer upon maturity.
not breach the investment rules if the note can be traded on a secondary
market.
Question 3
Which of the following Structured Settlement Contributions needs to be
reported via a Transfer Balance Event Notification form?
Select one:
a structured settlement contribution for $2m received on 1 November
2018
a structured settlement contribution of $1.8m received on 1 March
2006
a structured settlement contribution for $5m received on 1 August 2007
all of the above
Question 4
CGT contributions in excess of the member’s CGT cap count against?
Select one:
the member’s concessional contribution cap
the members non-concessional contribution
cap
the member’s transitional employer ETP cap
none of the above
2/43
Question 5
The trustees of an SMSF fund are permitted to accept?
Select one:
a voluntary employer contribution for a member regardless of their age.
a mandated employer contribution for any member regardless of their
age.
an eligible spouse contribution for a member over age 70 who meets the
work test.
all of the above.
Question 6
The following proceeds from the sale of an eligible small business can be
contributed to an SMSF using the CGT cap?
Select one:
only the capital gain portion from the disposal of active assets that
qualify for the 15-year asset exemption up to the cap value.
only the capital gains portion from the disposal of active assets claimed
under the CGT retirement exemption up to the cap value.
all of the sale proceeds from the disposal of active assets that qualify for the
CGT retirement exemption up to the cap value.
all of the sale proceeds from the disposal of active assets that qualify for the
CGT 15-year asset exemption up to the cap value.
Question 7
If an excess contributions tax determination has been received, an application
can be made to the Tax Commissioner to disregard a contribution for the
purposes of the contribution caps?
Select one:
within 60 days of receiving the determination.
by 30 June in the relevant financial year.
at any time.
none of the above.
3/43
Question 8
If an SMSF has not recorded the tax file number of a member?
Select one:
All member contributions must be refunded within 30 days.
Only concessional contributions must be refunded within 30 days.
Only non-concessional contributions must be refunded within 30 days.
No contributions will be refunded if the TFN is received by 30 June.
Question 9
Which of the following contributions are not impacted by the member’s total
superannuation balance?
Select one:
Member’s non-concessional contributions
Member’s concessional contributions
Member’s bring forward non-concessional contributions
Member’s catch up concessional contributions
Question 10
Certain contributions are tax free and are excluded from the nonconcessional contribution caps.
Which of the following contributions are both excluded from the nonconcessional cap and excluded from the total superannuation balance
calculation?
Select one:
Downsizer contributions
CGT contributions
Spouse contributions
Structured settlement contributions
4/43
Question 11
A member of an SMSF has provided her TFN to the trustees and is 66 on 25
December 2016 and continues to work full-time. Her contribution history shows a
$180,000 non-concessional contribution in 2015/16 and a $180,000 nonconcessional contribution in 2016/17.
How much can she contribute as a non-concessional contribution in
2017/18?
Select one:
Up to $100,000
Up to $180,000
Can no longer make any non-concessional contributions
Up to $300,000
Question 12
A contribution that a member of an SMSF elects to be covered by the CGT
cap must be contributed to the fund by?
Select one:
30 June in the financial year in which the CGT event occurred.
the day the member is required to lodge a tax return for the financial year in
which the CGT event occurred.
the later of the day the member is required to lodge a tax return for the
relevant financial year or 30 days after receipt of the proceeds but not later than
two years after the sale.
30 days after receipt of the proceeds but not later than two years after the
sale.
Question 13
You would not be able to wind up an SMSF if?
Select one:
the fund held listed securities that were currently suspended.
the Trustees were restricted from selling or redeeming frozen assets.
the fund held illiquid assets such as property.
the fund bank account is still open.
5/43
Question 14
The final annual return lodged with the ATO for an SMSF that has wound up
must be kept?
Select one:
for 5 years from the date of lodgement.
until the final Notice of Assessment is issued.
for 10 years from the date of lodgement.
for 7 years from the date of lodgement.
Question 15
In which of the following cases would a fund definitely cease to be an SMSF?
Select one:
If a fifth member was admitted to the fund.
If one of the members became a bankrupt.
If one of the members was convicted of serious tax avoidance.
If the fund breached the sole purpose test.
Question 16
Which of the following is true of an SMSF which is already wound up?
Select one:
The ATO can only levy penalties for breaches that occurred in the six
months prior to wind up.
The ATO’s power to deal with a contravention is not affected by the wind up
The ATO has no powers to levy penalties for breaches that occurred prior to
the wind up.
The ATO has no powers to disqualify former members of the fund.
Question 17
Which of the following is not an option for the sole member of an SMSF that no
longer wishes to be a trustee?
Select one:
Nominate a regulated fund to roll their benefits to.
Investing all the money in the fund into a wrap account in their name.
Nominate a bank account to have their benefits paid into if they meet a
condition of release.
Arrange for an RSE licensee to be appointed as the fund trustee.
6/43
Question 18
When an SMSF is being wound up the ATO needs to be notified?
Select one:
once the accountant has d the wind up.
when the tax returns are lodged with the ATO.
within 28 days of winding up the fund.
within 60 days of winding up the fund.
Question 19
An SMSF is wound up when?
Select one:
the Trustees have fulfilled all the steps required in the Trust deed for the
fund to be wound up.
the ATO issues a notice stating that the fund is wound up.
the ATO cancels the fund’s ABN
all the benefits in the fund have been paid out.
Question 20
An SMSF would be required to wind up if?
Select one:
the value of its net assets was NIL
a member became a disqualified person subsequent to joining the fund.
all members elected to roll their benefits over to another superannuation
fund.
the trust deed stated the fund must be wound up if there were no
trustees.
Question 21
If a fund trustee is a company?
Select one:
The ABN is to be cancelled after deregistration
It must be wound up at the time of winding up
A dual purpose Constitution may require a Director’s Resolution
It must be deregistered by ASIC
7/43
Question 22
Upon failing to meet the definition of SMSF in the SIS Act how long will a
fund continue to be treated as an SMSF?
Select one:
none, it will not be an SMSF immediately upon failing to meet the
definition in all circumstances.
the period specified by the ATO in response to an application by the
Trustees.
one year if no RSE licensee is appointed.
six months if no RSE licensee is appointed.
Question 23
An SMSF will satisfy the central management and control test?
Select one:
if 50% of the trustees are Australian residents.
if strategic decisions of the fund are made by Australian resident
trustees.
if the trustees permanently relocate to an overseas country.
for up to two years after the non-resident trustees have moved overseas.
Question 24
If an SMSF has active members it will satisfy the “active member test” if?
Select one:
50% or more of benefits in the fund are for Australian active resident
members.
50% or more of the total accumulated entitlements in the fund belong to
resident active members.
50% or more of the total accumulated entitlements in the fund belong to nonactive Australian residents.
50% or more of contributions in a year are made by Australian active
resident members.
8/43
Question 25
To be a complying superannuation fund for tax purposes, an SMSF must,
among other things, always be an “Australian superannuation fund” (within the
meaning in s 295-95(2) of the Income Tax Assessment Act 1997 (ITAA 1997))
and meet the active member test.
Regarding the active member test, which of the following is correct?
Select one:
where the fund has active members, at least 50% of all active members’
contributions are attributable to active members who are not Australian residents.
where the fund has active members, at least 50% of all active members’
contributions are attributable to active members who are Australian residents.
the fund has either no active members or, if there is an active member, at
least 50% of all active members’ assets (either based on market value or the
value payable to the members) are attributable to active members who are
Australian residents.
none of the above
Question 26
An SMSF has 2 members. One of the members has worked overseas for the
past four years and the other member has a zero balance in the fund.
The sole investment of the SMSF is a frozen mortgage fund which means the
fund has no cash flow to pay ongoing expenses?
Select one:
For the member who is overseas to make contributions to the other
member’s account to liquidity to cover fund costs for accounting, taxation
reporting and income tax provisioning.
The sole resident trustee contributes to his “zero” member account to
increase liquidity to cover costs for accounting, taxation reporting and income
tax provisioning.
The member with the only positive member balance, renew active
member status and make contributions to cover the expenses.
Transfer the fund to a small APRA fund and make sufficient contributions to
cover expenses.
9/43
Question 27
An SMSF is a complying superannuation fund for tax purposes if it is a
complying superannuation fund in the SIS Act. Under s19(1), the fund must be
a resident regulated superannuation fund.
Regarding tests to ensure residency, which of the following statements is
NOT correct?
Select one:
The fund was established in Australia and all assets of the fund are
situated in Australia
The central management and control of the fund is ordinarily in Australia
For the year of income the fund meets the active member test
The fund was established in Australia or at least one asset is located
within Australia
Question 28
Justin and Anna are trustees of the “ABC SMSF” which was established in
January 2018. Just after the SMSF was established, Justin accepted a 2 year
role in Singapore to oversee the launch of a telecommunications company.
Anna has her own business which she operates via the internet.
Justin and Anna rented out their home and retained their existing investments
in Australia with the intention of returning home. During their absence, they
held regular trustee meetings in their Singapore home and some at the
Qantas club meeting rooms. Minutes have been made and decisions acted
upon, mostly by the more experienced investor – Justin.
Due to delays in the telecommunications launch, Justin has been required to
extend his stay in Singapore for another 6 months.
Based on the facts of this case, the central management and control?
Select one:
May be maintained in Australia as the initial intention was for the trustees
of the SMSF to leave Australia for no more than two years and is still only
temporary.
Is not maintained in Australia as the trustees of the fund have been
absent from Australia for more than two years
Is not maintained in Australia as investment decisions were made whilst the
trustees were outside Australia.
None of the answers are correct
10/43
Question 29
Which of the following SMSF strategies main aim is to seek to reduce taxes?
Select one:
Re-contribution strategy
Anti-detriment payments
Fund reserves
Multiple pensions
Question 30
If a SMSF is deemed to be a non-resident fund it is subject to tax at the rate of?
Select one:
15% on income generated from Australian investments and 45% on
income generated from foreign investments
45% on its taxable income
15% on the low rate component and 45% on the non-arm’s length
component
0% if 100% of the taxable income was generated by investments held to
support a pension
Question 31
The Trust Deed of an SMSF contains a prescribed form allowing members to
make a written nomination directing the trustees to pay the benefit in
accordance with the nomination. The prescribed nomination form allows the
member to specify any individuals as beneficiaries of the death benefit and
allows the member to direct the form in which the benefit is paid (i.e. as an
income stream or lump sum). The nomination form must be signed in the
presence of one witness.
Which of the following statements is correct?
Select one:
The nomination form is not binding because it potentially allows the
member to nominate someone precluded from receiving a death benefit
under the operating standards
The nomination form may bind the trustee, depending on the
circumstances at the time of the member’s death
The nomination form will not bind the trustee, as it does not require two
witnesses
The nomination form will be binding, but not to the extent that it specifies the
form of the benefit (i.e. income stream or lump sum)
11/43
Question 32
TFN withholding applies to income generated by SMSF investments unless?
Select one:
the SMSF’s TFN is provided to the investment body
the TFN of each individual trustee or corporate trustee director is
provided to the investment body
the value of the investment is below $50,000
the investment body is notified that the investments are for an SMSF so the
requirement to quote a TFN does not apply
Question 33
To calculate exempt current pension income, you?
Select one:
exclude assessable contributions only
excludes non-arm’s length income and assessable contributions
must obtain an actuarial certificate
include all ordinary income and statutory income if it is 100% in pension
phase
Question 34
Which of the following SMSFs would be able to continue to segregate its assets,
and not require an Actuarial Certificate for ECPI purposes beyond 30 June 2017?
Select one:
Simon has a retirement phase interest of $1m in the SMSF and $1m in a
retail super fund and Janet has a retirement phase interest of $1m in the SMSF.
Simon has an accumulation interest of $2m and Janet has a retirement
phase interest of $1m, both in the SMSF .
Simon has an accumulation interest of $1m in the SMSF and $1m
retirement phase interest in a retail fund and Janet has a $1m retirement
phase interest in the SMSF.
Simon has a retirement phase interest of $2m and Janet has an
accumulation phase interest of $1m, both in the SMSF.
12/43
Question 35
In a financial year in which 100% of the investments of a SMSF are
segregated current pension assets, any capital gains are?
Select one:
taken up in the CGT schedule to the extent that they reduce carry
forward capital losses to $Nil
included in the fund’s taxable income but subject to a tax rate of 0%
not taxable but are recorded in the self managed superannuation fund
annual return and will be subject to tax in the future if the fund ceases to be
100% segregated
ignored altogether and not included in the self managed superannuation
fund annual return
Question 36
If a SMSF realises a capital loss from selling shares that are not segregated
current pension assets they can?
Select one:
take this amount up as a tax deduction to offset against any assessable
income
take this amount up as a tax deduction to offset against any assessable
contribution income only
offset this amount against capital gains generated by the fund and carry
forward any residual amount to be offset against future capital gains
offset this amount against capital gains generated by the fund in the year in
which the loss arises only
Question 37
The Member Information section of the self-managed superannuation fund
annual return?
Select one:
separately discloses the taxable and tax free components making up
each member’s balance
must be d for all members of the fund
only needs to be d for members who received contributions during the
year
includes a calculation of the excess contributions tax payable by each
member
13/43
Question 38
A retirement phase individual with a total superannuation balance that
exceeds $1.6 million impacts an SMSFs ability to?
Select one:
accept downsizer contributions
make CGT cap contributions
segregate assets for ECPI purposes
invest via a limited recourse borrowing arrangements
Question 39
Generally, the rate of tax payable by a complying resident SMSF is?
Select one:
15% on ordinary income and 10% on net capital gains.
45% on the low tax component
15% on the low tax component
0% if 100% if the taxable income was generated from investments held to
support a pension
Question 40
The tax rate on non-arm’s length income that is received by an SMSF is?
Select one:
0%
45%
15%
31.5%
Question 41
In order for an SMSF to be permitted to purchase a widely held unit trust
from a member it must be?
Select one:
purchased pursuant to an employee share scheme.
acquired at market value.
a listed security.
purchased for an amount within the 5% in-house asset limit.
14/43
Question 42
An SMSF must not intentionally acquire an asset from?
Select one:
any Part 8 associate of a member or a standard employer-sponsor.
a related party of the fund.
any employer-sponsor of the fund.
any member of the fund including those drawing pensions from the fund.
Question 43
The market value of assets as recorded in an SMSF’s financial accounts and
statements needs to be substantiated by?
Select one:
A valuation from a qualified independent valuer
A valuation from the fund’s auditor
Valuations from two experts in the field
Objective and supportable data
Question 44
A partial interest in a business real property owned by a member cannot be
purchased by an SMSF?
Select one:
if it is held under strata title.
if there are fixtures attached to the land at the time of acquisition.
if it is held as joint tenants with the member.
if it is held as tenants in common with the member.
Question 45
When considering the s.66 business real property exception, a business does not
include?
Select one:
not for profit enterprises
an occupation as an employee
primary production enterprises
any profession, trade, employment, vocation or calling carried on for the
purposes of profit
15/43
Question 46
Under Regulation 13.18AA for personal use assets, the definition of a
“qualified independent valuer” is?
Select one:
Anyone with suitable knowledge and experience about the asset which is the
subject of the transaction
Anyone not related to the member and who has specific knowledge about the
asset which is the subject of the transaction
Someone who is considered to have specific knowledge, experience and
judgement by their particular professional community
None of the above
Question 47
The purchase of residential property by an SMSF under a tenants in common
arrangement would?
Select one:
breach the in-house asset test as it is defined as an in-house asset.
would not breach the SIS investment rules unless it was purchased from a
related party.
breach the SIS investment rules as it is only allowable to co-own an asset as
joint tenants.
enable the property to be leased out to a related party on an arm’s length
basis
Question 48
Which one of the following contributions by a member of an SMSF would
breach the acquisition of related party asset rules?
Select one:
A contribution which involves the electronic funds transfer of funds from a
member’s account
A contribution which comprises a cheque received from a related party
A contribution comprising collectable bank notes acquired from a related
party of the fund
None of the above
16/43
Question 49
When preparing an SMSF’s accounts and statements for the 2018/2019
financial year, assets must be valued at?
Select one:
The value as recorded by a qualified and independent valuer
Market value
The trustees can choose historical cost or market valuation as long as the
method is used for all assets in that year
Net market value
Question 50
The contribution of an interest in residential property that is held as a tenant in
common with a related party?
Select one:
not breach the rules for the acquisition an asset from a related party if it is
subject to a lease arrangement between the trustee and a related party and the
acquisition will not cause the fund to exceed the in-house asset limit.
breaches the acquisition of related party asset rules.
breaches the in-house asset rules if the property is subject to a lease
arrangement between the trustee and a related party of the fund.
breaches the sole purpose test as there is joint use of the property by the
related party.
17/43
Question 51
The trustee of the Delta Superannuation Fund, an SMSF, holds units in the Delta
Unit Trust which were acquired before 11 August 1999 and were not in-house
assets of the fund at the time. The trustee of the unit trust has, over the years,
resolved to make trust distributions totalling $900,000 (as at 30 June 2012) but
has never paid any distribution to the superannuation fund.
Which of the following positions is not likely to be taken by the Australian Tax
Office?
Select one:
The fund is being maintained to provide low cost loans to the unit trust, and
consequently the fund is in breach of the sole purpose test.
The unpaid distributions may be considered forms of financial
accommodation and, in effect, interest-free loans which are not on an arm’s
length basis..
The initial unit holding continues to enjoy the benefit of the in-house
asset exclusion despite any other issues relating to the unpaid trust
distributions.
The distributions up to 30 June 2009 are reinvestments of income of a pre1999-unit trust and are therefore exempt from the in-house asset provisions.
Question 52
An unpaid distribution which is payable to an SMSF from a related trust?
Select one:
is a breach of the sole purpose test.
is an in-house asset.
is considered non-arm’s length income of the fund.
none of the above
18/43
Question 53
Three years ago, Ryan’s neighbour, Jalene, moved into the apartment next
door. Ryan asked Jalene over for a coffee, and at that meeting Jalene invited
Ryan to acquire shares in her private company. Ryan was apprehensive, so
Jalene offered him a 15% discount on the market value. Ryan had no spare
funds at the time, and instead his SMSF bought the shares. The company
declared its first dividend this year.
Which of the following is correct?
Select one:
The investment is not on an arm’s length basis.
The dividend is not non-arm’s length income.
The investment breached section 109 SIS.
The investment is an in house asset.
Question 54
Which one of the following would constitute an in-house asset of an SMSF?
Select one:
Shares in a listed public company acquired from a related party.
Business real property leased to a related party of the fund.
A loan to a related party for less than 5% of fund assets.
A life policy issued to the fund by a life insurance company.
Question 55
Albert lends his SMSF $300,000 to buy a single acquirable asset. The interest
rate charged is the same rate as Albert’s bank would charge the SMSF, although
unlike the bank which wanted security by way of a mortgage over the asset,
Albert did not require the loan to be secured.
Which of the following is correct?
Select one:
Albert should charge an extra 2% above the bank rate to ensure that the
loan is on an arm’s length basis.
The arrangement is no more favourable to Albert than if the parties were
dealing at arm’s length, and so doesn’t breach section 109 SIS.
The arrangement is on an arm’s length basis because it is common for
loans between individuals and entities within the same business group to be
unsecured.
The arrangement breaches section 109 SIS because the absence of
security means the arrangement is not on an arm’s length basis.
19/43
Question 56
The general formulae for calculating an SMSF’s market value ratio of inhouse assets by dividing?
Select one:
the fund’s market value of assets being leased to a related party by the
fund’s market value of all assets.
the fund’s market value of in-house assets by the fund’s market value of all
assets.
the fund’s market value of in-house assets by the fund’s market value of all
assets excluding cash.
the fund’s market value of in-house assets by the fund’s market value of all
assets less the market value of in-house assets.
Question 57
Which constitutes a breach of the in-house asset rules?
Select one:
Units in a related unit trust where the value of units held by the fund
exceeds 5% of the fund’s market value
A loan of $10,000 to a related party by a fund that has total assets with a
market value of $800,000.
A loan of $20,000 from a member of an SMSF which has total assets at a
market value of $800,000.
An investment in a private company where related parties own 50% of the
company shares.
20/43
Question 58
Vanessa’s SMSF has $3,000,000 in assets. She agrees to have her SMSF
lend $10,000 on an unsecured basis to her son’s best friend, Fidel, whose
business is struggling. The terms of the loan, including the interest rate, will be
similar to the terms offered by Fidel’s bank on a similar loan. Two years later,
Fidel asks Vanessa to reduce the interest rate by 5% for 6 months. Vanessa
agrees.
Which of the following is correct?
Select one:
The loan is a breach of SIS as it is both an in house asset, and a loan to an
associate of the member.
The reduction in interest rate potentially breaches section 109 SIS as the
arrangement is now more favourable to Fidel than if he and the SMSF had
been dealing at arm’s length.
The lower interest derived by the SMSF is non-arm’s length income,
taxed in the SMSF at the highest marginal tax rate.
A year later, Fidel receives an inheritance and unilaterally pays the SMSF an
amount to make up for the reduced interest. This is not non-arm’s length income
as it compensates the SMSF for agreeing to reduce the interest rate.
Question 59
A Fund that owns artwork can give a member one of its paintings provided?
Select one:
the member pays the Fund market value for the painting
the member is in accumulation phase and has sufficient unrestricted nonpreserved balance to take up the amount as a lump sum payment
the member provides services to the Fund equal to the market value of the
painting
All of the above
21/43
Question 60
Tomas is a member of an SMSF. He acts as the sole Director of the corporate
trustee and is the sole member. He is an accountant and provides accounting
services to the SMSF for which he charges a fee.
Which of the following statements is correct?
Select one:
Tomas is unable to receive remuneration for the accounting services as
this will breach the sole purpose test.
Tomas is able to receive remuneration for the accounting services but if the
payment exceeds commercial rates this will breach the rules that prohibit the
provision of financial assistance to members.
As Tomas is a director of the SMSF he is unable to receive any
remuneration for any services provided.
Tomas is able to receive remuneration for the accounting services and will
not breach any rules as long as he does not charge 15% more than the
market rate for those services.
Question 61
The SMSF trustee purchases equipment from an unrelated third party and then
leases the equipment to a related family partnership. If the partnership
purchases the equipment at the end of the lease term is this likely to represent
the provision of financial assistance to a member or relative?
Select one:
No and would not breach SIS rules.
Yes, and so would breach SIS rules.
No but would breach SIS rules.
Yes, but would not breach SIS rules.
22/43
Question 62
An SMSF trustee sells a block of land to a relative of a member of the SMSF at
market value. The purchaser pays a 10% deposit at settlement and is offered
deferred repayment terms at commercial rates.
The purchaser is therefore allowed to pay for the land in instalments over a
period of time. Is this sale agreement likely to represent the provision of
financial assistance to a member or relative?
Select one:
Yes, and so would breach SIS rules.
Yes, but would not breach SIS rules.
No and would not breach SIS rules.
No but would breach SIS rules.
Question 63
A Fund is not prohibited from lending money or providing financial assistance to?
Select one:
a Related Trust of the Fund
a step-child of a deceased member of the Fund
an ex-spouse of a relative of a member of the Fund
All of the above
Question 64
Collectables and personal use assets will need to have market value
determined by a qualified independent valuer in which of the following
situations?
Select one:
Purchased after 1 July 2016 only
Purchased on or after 1 July 2011 and disposed of to either a related or
non-related party
Purchased before 1 July 2016 and disposed of to a related party before 1
July 2016
Purchased on or after 1 July 2011 and disposed of to a related party on any
subsequent date
23/43
Question 65
As a regulated superannuation fund, an SMSF must be maintained for?
Select one:
at least one core purpose as well as one or more prescribed ancillary
purpose.
at least one or more of the prescribed ancillary purposes.
the core purposes and at least one or more prescribed ancillary
purposes.
at least one of the legislated core purposes.
Question 66
If an SMSF held collectables before 1 July 2011 which of the following
actions are allowed under SIS rules?
Select one:
The assets could have been displayed or stored in the member’s home
The assets cannot be displayed in the member’s home but can be
securely stored at the premises
The assets can be leased to a member to be displayed in a business
premises
None of the above
Question 67
Which of the following is an indication that an SMSF is not being maintained in
accordance with the sole purpose test?
Select one:
All of the fund’s investment activities are undertaken in accordance with the
SIS covenants.
A member of the fund receives a personal benefit from the fund which
has influenced the decision-making process of the trustees.
A member of the fund receives an incidental or insignificant personal
benefit from the fund.
A fund member receives a personal benefit from the fund as part of
activities consistent with the sole purpose test.
24/43
Question 68
There are several elements that determine how an SMSF must invest
member funds.
Which of the following is the one that overrides all others?
Select one:
SIS Legislation
Trust deed
Investment strategy
None of the above
Question 69
Planning for loss of capacity in an SMSF will always require?
Select one:
Revocation of any existing enduring powers of attorney
A review of the shareholders
The installation of a corporate trustee
A consideration of the provisions of the trust deed
Question 70
The governing rules of an SMSF fund include?
Select one:
only the fund’s trust deed plus any amendments
the fund’s trust deed together with the SIS legislation
the fund’s trust deed, SIS legislation and any other written or unwritten
rules consented to by the trustees
the fund’s trust deed and any other written rules consented to by the
trustees
25/43
Question 71
The ATO requires new trustees, or new trustee directors of a corporate
trustee, of an SMSF to a Trustee Declaration.
Which of the following is not acknowledged by a person making the trustee
declaration?
Select one:
The trustee making the declaration must act in the best interests of all
members of the fund
The trust deed must be kept up to date in accordance with the law and the
needs of the members
The SMSF trustee has access to the government’s financial assistance
program
Contributions can only be accepted and benefits paid to members or their
beneficiaries when the conditions specified in the l