Property affordability is high on the political agenda nowadays and by the sound of things, Mr Shorten is not going to let facts get in the way of a bit of useless class warfare for as long as he’s seen by his base as hurting the “wealthy”. Unless of course he’s trying to please some influential … [Read more...] about Why proposed SMSF lending changes are misplaced
Limited Recourse Borrowing Arrangements
SMSF Liquidity requirements are a relatively new feature of most SMSF loans that can reduce your SMSF's borrowing capacity. To understand how liquidity requirements work - and how you can reduce the impact on your borrowing capacity - we'll start by defining just what 'liquidity' means. In terms of … [Read more...] about SMSF Liquidity Requirements (and how to reduce their impact on borrowing capacity)
The simple answer is yes, SMSFs are allowed to invest in all manners of collectibles including but not limited to cars and other motor vehicles. The list would also include things like jewelry, art, stamps, wine and more… The main challenge with these investments is to ensure that the SMSF owning … [Read more...] about Can my SMSF purchase a collectable car?
Today we’re going to look at the structure that’s required for a self managed super fund to invest in property. We’ll look at the entities required - including the SMSF itself. More often than not, if you’re setting up an SMSF to invest in property, you’ll want to leverage - that is you’ll want to … [Read more...] about Structuring Your SMSF to Borrow and Invest in Property
We are not going a week without getting a distressed call from someone who has purchased an apartment with their SMSF only to find out that getting finance for it is extremely difficult and I thought it might help to discuss some of the things to look out for for trustees considering this kind of … [Read more...] about Why you should think twice before buying an (off the plan) apartment in your SMSF
In Part 1 of this article on the ATO's Audit focus on SMSFs with LRBAs that don't meet their Guideline for non-arms length dealing, we looked at the ATO's position and why it's important that your LRBA meets their requirements (this applies to SMSFs with 'non-bank' limited recourse borrowing … [Read more...] about ATO Auditing of SMSFs’ Limited Recourse Borrowing Arrangements – Part 2
Earlier this year the Australian Taxation Office (ATO) published a new Guideline for ensuring that non-bank limited recourse borrowing arrangements (LRBAs) meet the ATOs requirements for arms length dealing. The ATO has also warned that from the 1st of July 2016, they will be auditing … [Read more...] about Limited Recourse Borrowing Arrangements and ATO Auditing – Part 1