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 »
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 »
The use of Limited Recourse Borrowing within Self Managed Super Funds continues to capture the attention of trustees and advisers alike. We are seeing some significant work being undertaken in this area of borrowing to provide greater clarity of section 67A & 67B introduced into the Superannuation Industry (Supervision) Act 1993 (“SIS Act”). With this … Continue reading »
Borrowing in super has become a very popular strategy with self-managed super funds since its introduction back in September 2007. I see more and more SMSFs using borrowing, but you need to be aware of some of the traps in using this strategy. When first introduced, superannuation borrowing was done using what was then called … Continue reading »
One of the key changes that took effect on 7 July 2010 for limited recourse borrowing arrangements (section 67A of the SIS Act), was the introduction of the terminology of a ‘single acquirable asset’. This change has had a profound impact on many of the strategies that were available under the ‘old’ section 67(4A) where the … Continue reading »