The Australian Taxation Office (ATO) is increasingly concerned about the lack of quality advice and training given to trustees and other SMSF professionals. Assistant commissioner for superannuation Matthew Bambrick recently stated that ““We do find a worrying number of trustees that have little to no...
SMSFs may not be appropriate for people who spend extended time overseas. Such funds can easily lose their complying status and suffer significant tax penalties due to the SMSF residency rules. All SMSFs need to qualify as an Australian Superannuation Fund in order to comply...
There appears to be a great deal of mystery surrounding the use of reserves inside a SMSF. For SMSFs there are a range of strategies available that can utilise reserves to deliver outstanding member outcomes. Section 115 of the Superannuation Industry (Supervision) Act 1993 allows...
Limited recourse borrowing arrangements (LRBAs) are becoming increasingly popular in the SMSF sector as a property acquisition strategy. Trustees of SMSFs are prohibited from borrowing under the Superannuation Industry (Supervision) Act 1993 (SIS Act) except when borrowing under a LRBA. An LRBA is a loan...
Following the Cooper Review, rules related to ownership of collectibles in an SMSF have been tightened, with a series of new and specific standards to be met by the SMSF. According to the Australian Taxation Office (ATO), in June 2013 about $440 million was invested...
The Australian Securities and Investments Commission (ASIC) has issued a warning about SMSF spruikers who are encouraging consumers to invest in residential property via the National Rental Affordability Scheme (NRAS). The NRAS offers property investors direct payments and tax offsets for building and leasing to...