From www.smsfadviser.com: The case of *Commissioner of Taxation v Bendel* has implications for SMSFs with investments in pre-1999 unit trusts, particularly regarding the definition of “loan” as outlined in legislation.

Special counsel Bryce Figot indicates that under both the Income Tax Assessment Act and the Superannuation Industry (Supervision) Act, a UPE from a trust can be considered a loan if circumstances suggest a provision of financial accommodation exists.

The ramifications of this case may challenge existing views on UPE transactions within SMSFs, potentially altering how related party transactions are regulated.