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 »
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 »
I read with great interest recently in the Australian newspaper, an article titled “Setting up an SMSF to buy property a risky strategy” (13 November 2012) regarding ASIC commissioners Peter Kell and Greg Tanzer focusing a taskforce on aggressive marketing of speculative property developments with SMSF limited recourse borrowing arrangements. Whilst there appears to be a lot … Continue reading »
The topic of borrowing in super continues to gain momentum with a growing number of SMSFs looking to establish limited recourse borrowing arrangements (LRBAs) to acquire property. The next SMSF Academy webinar will discuss the latest issues impacting LRBAs including: Understanding the Commissioner’s views in the final ruling, SMSFR 2012/1: application of key concepts … Continue reading »
Whilst the interest in limited recourse borrowing within self-managed super funds appears to be rising, the opposite has been posed to the Australian Taxation Office in respect to the level of interest than may be applied to a related party loan. The June 2012 NTLG minutes posed the question as to whether a zero percent … Continue reading »
If the industry was pleased about the draft ruling on limited recourse borrowing arrangements (LRBA), the final ruling, SMSFR 2012/1 has done nothing to wipe the smiles off trustee & industry faces. The ATO has taken a practical approach in this ruling to key concepts including: What is an ‘acquirable asset’ and a ‘single acquirable … Continue reading »
I am pleased to advise that the next SMSF InPractice Webinar will be on the hot topic of Limited Recourse Borrowing Arrangements. With the recent release of the much publicised draft SMSF Ruling, SMSFR 2011/D1, this webinar is not to be missed as we explore the impact of the Commissioner’s changing views surrounding some of the key … Continue reading »
I’ve spent the past week presenting at professional development days for National Mortgage Brokers (NMB) on the topic of SMSF borrowing. As part of these PD days I’ve had the opportunity to hear from many of the major financial institutions about their SMSF loan products. What resonated most with me hearing from the banks is … Continue reading »
Watch my latest video that provides further details about The SMSF Academy Limited Recourse Borrowings days: Sydney – Tuesday, 24 May 2011 Melbourne – Thursday, 26 May 2011 Find out more about the SMSF Limited Recourse Borrowing day. Continue reading »