The ability to borrow to acquire property within a SMSF using a Limited Recourse Borrowing Arrangement (“LRBA”) is experiencing exponential growth. This property acquisition strategy has been embraced not just simply by “Mum & Dad” SMSFs but is becoming increasingly popular with business “partners”. The prospect of acquiring property from which to operate a business, … Continue reading »
The growing interest of property investment within self-managed super funds has certainly extended to individuals looking to undertake some of the property improvements themselves to build retirement savings (e.g. builders). Recent discussion within the NTLG Superannuation Technical Sub-group (March 2013) looked at the issue of a related party undertaking improvements to a property at no … Continue reading »
The growing popularity of property investment within self-managed super funds (SMSF) has certainly attracted a new breed of SMSF trustee, but has also attracted the interest of the Australian Taxation Office and ASIC as they continue to regulate this growing sector. It is important that individuals investing in property for their retirement understand the key … Continue reading »
Is it essential when buying property using a limited recourse borrowing arrangement (LRBA) to require only two payments, being a deposit and settlement payment to comply with the single acquirable asset definition? This was the question recently asked of the NTLG Super Technical sub-group (December 2012) regarding example 10 within SMSFR 2012/1, which refers to … Continue reading »
The ability to utilise borrowings to repair and maintain an asset as part of an SMSF limited recourse borrowing arrangement (LRBA) has been a key feature of the revised legislation since 7 July 2010, when section 67A & 67B were introduced. However, being able to redraw on a loan facility to make such repairs is … Continue reading »
A Happy New Year to all my readers… With the SMSF industry growing strongly, 2013 is likely to provide one of the most challenging and competitive (yet rewarding) periods for SMSF professionals. The year ahead will require practitioners to ‘step-up to the plate’ and be ready for many of the reforms that will reshape the … Continue reading »
It’s been a fascinating year… an Olympic year, with golden memories from London, a diamond jubilee, a Korean named Psy had a billion visits on YouTube in just five months, and the world still lingers on the precipice of further economic turmoil. It is this global uncertainty that has arguably continued to have the biggest impact on superannuation and … Continue reading »
The ATO’s recent release of Taxpayer Alert – TA 2012/7, provide trustees and professionals with a timely reminder about acquisition of property using a Limited Recourse Borrowing Arrangement (LRBA) and also through related unit trusts. Some of the examples of concern raised by the Commissioner in TA 2012/7 surrounding LRBAs suggest individuals are either: oblivious … Continue reading »
Whilst most of the attention with limited recourse borrowing arrangements (LRBAs) has centred around property transactions, there has been a need to clarify a range of issues on other acquirable assets, in particular assets allowable as a collection of identical assets under the definition of a single acquirable asset (SAA). It’s not uncommon when placing an … Continue reading »
After only just discussing the regulatory focus by ASIC on SMSFs and property investments, we have seen further regulatory “alarm bells” ringing through the ATO’s release of taxpayer alert, TA 2012/7. A Taxpayer Alert is an “early warning” of significant new and emerging higher risk tax and superannuation planning issues or arrangements that the ATO … Continue reading »