The end of the road for leverage inside super?
Government / Limited Recourse Borrowing Arrangements / SMSF

The end of the road for leverage inside super?

It appears abundantly clear from the FSI panel and a range of submissions including the Reserve Bank and Big 4 banks that the days are coming to a close for the use of leverage inside super.  You only need to look at the default position of the panel into the FSI interim report to understand that they … Continue reading »

Is leverage a good thing within superannuation?
Limited Recourse Borrowing Arrangements / Opinion / SMSF

Is leverage a good thing within superannuation?

One of the most vocal aspects of the FSI interim report has been the use of leverage within superannuation.  It is a debate that has raged since the recommendation from the Super System Review (Cooper Review) to review leverage inside superannuation approximately two years following the final report.  Earlier this year at the SPAA National conference, … Continue reading »

Related party lenders beware! ATO signals warning on zero interest SMSF loans
Limited Recourse Borrowing Arrangements / Professionals / SMSF / SMSF Compliance

Related party lenders beware! ATO signals warning on zero interest SMSF loans

The interest in the concept of 0% interest loans to undertake a limited recourse borrowing arrangement (LRBA) evolved following the ATO’s initial views on the subject through the now disbanded NTLG Superannuation Technical sub-group.  These views initially expressed alluded to acceptance that a zero or low-interest rate loan through a LRBA did not breach any … Continue reading »

SMSF Podcast Show – Episode 11
Limited Recourse Borrowing Arrangements / Podcasts / Professionals / SMSF

SMSF Podcast Show – Episode 11

Limited Recourse Borrowing Arrangements (LRBAs) have certainly been a topical subject within the superannuation industry, with a heightened amount of media coverage and much debate over their suitability for SMSF trustees.  Both the Australian Securities & Investment Commission (ASIC) and Australian Taxation Office (ATO) as Regulators have taken a greater interest in these arrangements over … Continue reading »

Now that my SMSF loan is repaid
Limited Recourse Borrowing Arrangements / SMSF / SMSF Compliance

Now that my SMSF loan is repaid

The announcement by the Australian Taxation Office (ATO) to draft a legislative instrument to deal with various In-House Asset (IHA) issues with limited recourse borrowing arrangements (LRBAs) was a logical and overdue step.  It has been a view held for quite some time by the ATO, that the exemption in section 71(8) of the SIS … Continue reading »

In-house asset problem solved for LRBAs
ATO / Limited Recourse Borrowing Arrangements / SMSF

In-house asset problem solved for LRBAs

An unresolved area for Limited Recourse Borrowing Arrangements (LRBAs) has been the application of the in-house asset rules, in particular once the SMSF loan had been repaid.  It has been the view of the ATO for some time through discussions via the NTLG Super technical sub-group that the exception in section 71(8) of the SIS … Continue reading »

Total hysteria with SMSF limited recourse borrowing?
Limited Recourse Borrowing Arrangements / SMSF / SMSF Compliance

Total hysteria with SMSF limited recourse borrowing?

It’s hysteria like we’ve never seen before with self-managed super funds… property investment is rampant; every man and his dog (I’m not sure the dog can be a trustee by the way) is borrowing within a SMSF to acquire property.  This is creating a housing bubble, over inflating prices in the residential property market (in … Continue reading »

Are you managing the risks with SMSF borrowing arrangements?
Limited Recourse Borrowing Arrangements / Professionals / SMSF / Trustee education

Are you managing the risks with SMSF borrowing arrangements?

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 »

Related party property improvements and contributions
Contributions / Limited Recourse Borrowing Arrangements / Professionals / SMSF / SMSF Compliance

Related party property improvements and contributions

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 »

VIDEO: Borrowing to acquire property using an SMSF
Limited Recourse Borrowing Arrangements / SMSF / SMSF Strategy / Trustee education

VIDEO: Borrowing to acquire property using an SMSF

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 »