ATO provides Sole Purpose Test guidance to DomaCom

Arthur Naoumidis

Arthur Naoumidis

DomaCom Limited (ASX: DCL) (DomaCom) is pleased to announce that DomaCom and the Australian Tax Office (ATO) have reached agreement on the conditions under which the ATO will not apply compliance resources regarding the Sole Purpose Test (SPT) for an investment by an SMSF into a DomaCom sub-fund that owns a residential property, where a related party of the SMSF may happen to become a tenant.

The conditions agreed with the ATO include:

  • Amendment to the DomaCom Platform to allow trustees to make a SPT Declaration (see attached declaration) when making an investment. The declaration ensures that SMSF trustees do not engage in behaviour that suggests they are maintaining their SMSF for the collateral purpose of providing accommodation to a related party tenant.
  • The platform will record this declaration and make it available to the ATO and SMSF auditors.
  • Amendments to the Product Disclosure Statement (PDS) and Supplementary SPDS for the DomaCom Fund covering the SPT Declaration.

DomaCom CEO, Arthur Naoumidis, says “I am pleased to confirm that DomaCom has obtained ATO confirmation on how SMSF trustees in DomaCom can satisfy the Sole Purpose Test after the Full Federal Court of Australia judgement in Aussiegolfa Pty Ltd (Trustee) v Commissioner of Taxation [2018] FCAFC 122.”


“We thank the ATO for providing this practical clarification so that SMSFs can continue to invest in DomaCom property sub-funds where, subject to certain protocols being observed, related parties may happen to become the tenant of the underlying properties.”

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