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 »
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 »
I’m pleased to announce the launch of my Top10 SMSF strategies for 2012-13 webinar to be held at 11am AEST, Thursday, 23 August 2012. With more than 410 attendees to last year’s session, this is the most anticipated SMSF webinar for 2012!! In addition to the webinar, all attendees will receive a free copy of … Continue reading »
It quite amazing how far we have come with limited recourse borrowing arrangements over the nearly 2 years since changes were introduced on 7 July 2010. Many people would recall at that time of the introduction of sections 67A and 67B into the SIS Act that many within the industry were highly critical of the … Continue reading »
As we move closer to the implementation of industry reforms regarding the provision of financial advice, Treasury last week has added to the pile with the re-issuing of draft Corporations Amendment Regulations to provide that limited recourse borrowing arrangements as allowed under superannuation law are financial products. These reforms were previously announced back in March … Continue reading »
The ability to take control of your retirement savings is a key driver in the continued growth of SMSFs. However, being a trustee comes with responsibility to ensure that your fund meets strict regulatory and compliance obligations. Failure to meet these can result in significant penalties, along with the potential loss of the fund’s complying … Continue reading »