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Assignment Q: SMSF balance close to negative balance, whats next?

Discussion in 'Financial Planning Study Group' started by unplugged1983, 6th Dec, 2016.

  1. unplugged1983

    unplugged1983 New Member

    18th Dec, 2014
    Perth, WA
    Hi all

    Just doing a SMSF assignment and wanted to to know your feedback/opinions on the following scenario:

    If a client is nearing $0 in his cash account inside his SMSF, and fees and charges were to take his account into a negative, would this constitute a loan from the SMSF to the client?
    What would the client need to do in order to avoid any issues and ATO penalties, while the client organised funds to be contributed into the low balance cash account?

    Thanks all