SMSF property: ATO ‘relaxes’ borrowing rules (what’s OK and NOT OK)
Purchasing an asset using a limited recourse borrowing arrangement (LRBA) is becoming increasingly popular with SMSF trustees seeking to gear an investment portfolio without breaking super’s ‘no borrowing’ rules.
Cooper Review: Government flags ‘bye bye’ to SMSF borrowing
The Federal Government released its response to the Cooper Report on 16 December 2010, and among the 139 recommendations it took on board from the Cooper Report, one of those recommendations could potentially be explosive for some SMSF trustees.
SMSF supervisory levy to increase from 2010/2011 year
Hidden in the Federal Government’s response to the Cooper Review is a real doozey. The Government recommends that self-managed super funds be hit with a higher supervisory levy, effective from the 2010/2011 year.
Limited recourse borrowing: What you can and can’t do under the new super rules
Although self-managed super funds are generally not permitted to borrow, the super rules do provide some exceptions. The most publicised exception to the ‘no borrowing’ rule is the ability to enter a limited recourse borrowing arrangement.
THE SOAPBOX: Gearing can be the means, but not the end
As a property and share investor for more than 20 years, gearing (borrowing) can be a legitimate means to purchase assets, but gearing is not an investment in itself: it is simply a means to invest with associated costs and extra risk.
SMSF basics: Can my DIY super fund borrow money?
The general rule is that your super fund can’t borrow money, although like all rules the ‘no borrowing’ rule has some exceptions. SMSF trustees need to understand the difference between direct borrowing and indirect borrowing and the special rules that apply to each exception.
SMSF investment: overseas property
Q: Since we can now use super to purchase real estate, is this also true for property in the United States? Can you provide me with some guidance on how I could find out the process and correct entities to form to do this?
SMSF and property: instalment warrants 101
NEWS UPDATE: On 10 March 2010, the Minister for Financial Services, Superannuation and Corporate Law, Chris Bowen MP announced two changes to the instalment warrant rules in relation to superannuation:
