Deregistration of SMSF corporate trustee

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Companies in Australia are legal entities – virtual people. They are capable of doing many things in their own right, including acting as the trustee of a self-managed super fund. Many SMSF trustees are still unfamiliar with the consequences of deregistering a company especially when it’s been acting as an SMSF trustee. Consequences of deregistering... Read more continue reading

Keeping your SMSF compliant when overseas

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SMSF trustees need to be careful when going away overseas for extended periods as they face many risks including losing residency These include: Failing the Australian residency requirements for the SMSF: these require the SMSF to be established in Australia, the Central Management Control (‘CMC’) to be ordinarily situated in Australia and to pass the active members... Read more continue reading

Borrowing by SMSFs is under attack

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Changes to APRA standards have moved the goal posts for SMSFs borrowing to buy real estate. The problem is we’re late in the second half. Acquiring property through a SMSF using borrowed money may be an attractive investment choice for many, however, with banks tightening their lending criteria on the insistence of The Australian Prudential... Read more continue reading

Six Park partners with Heffron to launch transparent, low-cost SMSF solution

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Automated investment provider Six Park has announced it has partnered with leading independent self-managed super fund (SMSF) administration provider Heffron to offer a transparent, low-cost, digitally driven, end-to-end SMSF service. The partnership allows SMSF trustees to establish an SMSF and take advantage of robo-advice for their fund, with Heffron managing the compliance and Six Park... Read more continue reading

SMSFs as ‘wholesale clients’ or ‘sophisticated investors

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It can be beneficial sometimes for an SMSF to be considered a ‘wholesale client’ or a ‘sophisticated investor’ in order to get access to investments that might not be open to ‘retail clients’. This may be because the promoter doesn’t want to go to all the expense and trouble of fully complying with the securities... Read more continue reading

Regulatory change and global volatility keeping SMSF investor money on the sidelines

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Self-managed superannuation fund (SMSF) trustees have growing concerns on the impact of regulation and ongoing global volatility on their retirement plans with a growing number increasing cash reserves, according to AMP Capital. Findings from annual research undertaken by AMP Capital show that more than two-thirds (65 per cent) of SMSF trustees are keeping cash in... Read more continue reading

Tips and traps appointing a corporate trustee for an SMSF

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There are very few SMSF specialists who don’t think that having a company as the trustee of the fund is preferable to having the members act as trustees individually. But once you’ve decided to take the plunge and change your trustee to a company it is vitally important that the change be done properly. Trustees... Read more continue reading

Auditor says ‘safe harbour’ terms are mandatory – what now?

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Would an SMSF trustee decision not to adopt the safe harbour terms from the ATO’s Guidelines in relation to a related party loan breach the Superannuation Industry (Supervision) Act SIS (Act)? The ATO’s Practical Compliance Guidelines PCG 2016/5 (“Guidelines”) provide safe harbour terms which, if complied with, mean the related party loan will be treated... Read more continue reading

The popular choice for new SMSFs: A corporate trustee

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A fundamental question for intending SMSF members is whether to have a corporate trustee or individual trustees for their new fund. More than 80 per cent of new SMSFs established in 2016-17 had a corporate trustee whereas 57 per cent of all SMSFs had a corporate trustee as at June last year, according to the... Read more continue reading

Further developments on double stamp duty provisions for SMSF borrowing to buy property in NSW

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Last year in September we wrote about changes to section 18 of the NSW Duties Act which appeared to provide more flexibility to SMSFs borrowing to buy investment property and entering into Limited Recourse Borrowing Arrangements. The new arrangements seemed to allow a Fund Trustee to sign the contract of sale and then later incorporate... Read more continue reading