A relaxation of rules around borrowing in self-managed superannuation funds (SMSFs) nearly a decade ago now means that SMSFs can borrow to invest in some circumstances. Although loans were originally allowed for borrowing to invest in shares, restrictions around the rules mean that in most cases they are now used for ... Read more
Guide to in-specie transfers for SMSFs
In specie superannuation transfers (also known as off market transfers) are transfers of assets in and out of super funds, rather than actual transfers of money. In specie is a Latin phrase meaning “actual form”. An in specie transfer to or from a super fund is therefore the process of transferring an asset in or ... Read more
Investment scams: What are they and how do you avoid them?
Scams in the 21st Century There’s no argument that advancing technology has been the one of the biggest game-changers this century. The digital age has revolutionised how we conduct our daily lives. And while technology offers more convenient ways of doing things, it also comes with risk. Cyber scamming - or ... Read more
SMSF investment: What assets do DIY super trustees prefer?
Note: We regularly update this article with the latest data on self-managed superannuation funds (SMSFs) released by the Australian Taxation Office. This article contains the latest data available up to September 2018 (for data on SMSF growth and for asset allocation data as at March 2018). Each quarter the ATO ... Read more
SMSFs: How do I calculate CGT on an asset sale?
Q: If I purchased a rental property in my SMSF for say $300,000 five years ago and the house is now valued at $400,000 in the SMSF what will be the capital base for the calculation of future capital gains tax (CGT) if I sell the flat? Will it be the original $300,000 or the $400,000? A: We are not permitted to ... Read more
SMSFs: Selling a property asset and CGT
Q: If my self-managed super fund (SMSF) owns an investment property, and the SMSF later sells the property, what is the amount of capital gain tax payable by the SMSF? A: Before we respond, please note that anyone considering the tax implications of a super strategy or investment decision should speak to a ... Read more
Accessing super early: Living overseas and reached preservation age
Q: I’m an expat Australian, and I have been living in Europe for quite a few years. I am 57 and I want to access my superannuation to buy a property. Is that possible? I have no idea if I will retire back in Australia or stay here, but my view is that if I do retire back in Australia, I will sell the property to fund ... Read more
Retirement planning: Six dangers when seeking financial advice
I have been writing about, or working in or on the sidelines of the financial services industry for 30 years now, and the regulator and the advising industry are still, in 2018, grappling with how Australians make investment decisions and the influential role that advisers and financial organisations hold in ... Read more
Property and super: What’s the deal? (15 popular Q & As)
We receive many questions from readers about investing in property using superannuation money. Questions range from: ‘Can I withdraw my super to buy a house to live in?’, right through to ‘How can I use my super fund to borrow money to invest in property?’. For the convenience of our 2.5 million-plus readers, we ... Read more
SMSF basics: Can my DIY super fund buy my residential investment property?
Q: I own a residential unit as an investment property as a personal investment. I would like to keep this unit as long as possible. The unit is a safe income stream and a safe haven against market uncertainty. However, if I have to sell it later, I won’t be able to put the money into my SMSF because of the work test ... Read more
SMSF investment: Can we sell fund assets to members?
Q: We understand that SMSFs cannot purchase property from members. What we want to know is whether members can purchase property owned by the SMSF, providing fair market valuation is paid for this? Does the valuation need to be established through a valuation, or is an appraisal sufficient? Our SMSF currently jointly ... Read more
Revisited: Is property a good investment for your SMSF?
We receive a steady stream of emails seeking information about investing in property via an SMSF. In response to this continued interest, we have revisited the popular question, is property a good investment for your SMSF? The question (is property a suitable investment for an SMSF?) is an important one, and the ... Read more
SMSF investment: Purchasing 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 establish in order to do this? Thanks. A: Before I answer your question, I need to clarify your comment about ... Read more
SMSF investment: Can my DIY super fund invest in property directly?
Q: I am interested in setting up a self-managed fund. I would like to know more about the rules for purchasing property in a super fund, and whether it is possible to use borrowings to do so. A: A self-managed (DIY) super fund can invest in all types of property, including residential, commercial, industrial, and ... Read more
Comparing super funds: Which fund has the largest property allocation?
Q: Do you know if anyone publishes a list of the largest super funds in Australia, and also possibly by amount allocated to the property sector? We have similar questions to your own on our website that we have published over the past few months, and the links for the most relevant articles are set out below: ... Read more