SMSFs driving non-bank lender raising

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A slowdown in growth for the big four and regional banks is being offset by investor interest in the burgeoning growth of non-bank lenders. This is evident in the recent capital raising by Australasia’s leading non-bank lender Metrics Credit Partners (Metrics), for its ASX listed MCP Master Income Trust (ASX:MXT). Its current $638 million Entitlement […]

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Selling member’s business real estate into SMSF

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Townsend Lawyers’ Jeff Song explains that this strategy, though perhaps not quite as attractive, is still viable. From 1 July 2018 new law provides that in certain circumstances the outstanding amount of a limited recourse borrowing arrangement (LRBA) will count towards the relevant member’s total superannuation balance (TSB). How will these new provisions affect the […]

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Substituting your SMSF when off-the-plan is off-the-rails

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Bob and Susan can’t afford to complete their off-the-plan purchase unless they use their super. Bob and Susan signed a contract and placed a deposit in their personal capacity some time ago to acquire an off-the-plan apartment which is now nearing completion. The bank has valued the property lower than the original contract sale price […]

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ATO plays hard with late lodging SMSFs

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It seems that the ATO will change the status of SMSFs which fail to lodge their SMSF annual returns by the due date (subject to a 2-week grace period) from “complying” to “regulation details removed”.  This will effectively be social exclusion for those SMSFs. Whilst this change does not alter the complying fund status of […]

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Is it possible to admit your child as a member to your SMSF?

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Bob and Barbara have recently established an SMSF with a corporate trustee and want their 17-year-old son, Ben, to join their SMSF.  Can Ben join? We often get asked by our clients who are contemplating establishing an SMSF whether they can admit a child member to their SMSF. While it is not uncommon to admit […]

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30 September LEI deadline looms for SMSFs

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With no further extension of relief by the Australian Securities and Investments Commission (ASIC) in sight, the 30 September deadline for legal entities, including self-managed superannuation funds (SMSFs), to obtain a Legal Entity Identifier (LEI) is fast approaching. “From 1 October, a range of Australian financial services entities – including funds, brokers/traders as well as […]

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SMSF Property development – issues to consider

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Can an SMSF be used to develop a property? Yes, but there are some superannuation compliance issues that arise when considering whether to develop a property in your SMSF. John and Mary want to knock down and rebuild a property in their SMSF Let’s consider an example of John and Mary who own a property […]

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Rising SMSF establishment balances ‘strong evidence’ advice improving

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There has been a sharp increase in the average and medium establishment balances for self-managed super funds (SMSFs) – clear evidence that the quality of advice to the SMSF sector is improving and the key takeaway from the SMSF Associations Review of the Australian Tax Office’s SMSF Statistical Overview 2016-17. The statistics show that the […]

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SMSF establishment at a 10 year low while unmet advice needs continue to grow

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The annual rate of Self-Managed Super Fund (SMSF) establishment has slowed, with just over 20,000 SMSFs being set up in the first quarter of 2019, down from the 40,000 established in late 2010, according to the latest Vanguard/Investment Trends SMSF Reports – the nation’s most comprehensive research into SMSF trustees and their advisers. Launched yesterday, […]

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Related party loan to SMSF – when is a loan not a loan?

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John is the sole member of his SMSF and is the sole director of the fund’s corporate trustee. After seeking financial and tax advice on the benefits of owning a property in his SMSF, John decides to sell his investment property valued at $1m to his SMSF. As his SMSF’s available balance is $200k short […]

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