From smsmagazine.com.au: SMSF trustees are advised against altering their approach to unpaid present entitlements (UPE) from unit trusts following a recent court case (Commissioner of Taxation v Bendel) unrelated to SMSFs, which clarified the definition of a loan.

Shelley Banton from ASF Audits emphasized that the case should not lead to premature changes in handling UPEs, as the ATO is currently appealing the decision.

Trustees should continue treating UPEs as they have been, avoiding the risk of becoming test cases in a similar situation.