Fractional investing company Domacom has lost on two out of three points in a Federal Court appeal which would have otherwise made it easier for SMSFs to buy property which could be leased to relatives.
The Federal Court has given its ruling in Aussiegolfa Pty Ltd (Trustee) v Commissioner of Taxation  FCAFC 122. Aussiegolfia is the trustee company of the Benson Family Superannuation Fund, which has as its sole member an employee of Domacom.
The SMSF had invested in a ‘sub-fund’ of the Domacom Fund. This sub-fund had purchased a residential property, which was leased to three tenants – one of whom was the daughter of the member.