The Financial Inquiry Report has come as a jolt to the real estate aspirations of SMSF owners. It is in fact a little defeating to think about the changes that may enter the domain of the Limited Recourse Borrowing Arrangements. While SMSF owners cannot do much about the alterations that occur at this level, they can certainly make a few modifications in the way they pursue their SMSF properties.
Super News
SMSF Owners Breathing Easy For Now
In an article for the website Money Management, Nicholas O’Donoghue argues that the Superannuation sector has been offered great clarity by the Federal Budget. Things could have got tricky had some real changes been made to the Superannuation laws but the budget categorically abstained from doing so.
SMSF Investment Traps to avoid
Investing through your SMSF can turn out to be a lucrative venture and if you are spot on with your declared investment strategy, you can reap great many benefits over the short and the long term. However, everything in life for which the word ‘lucrative’ rings true is also beset with traps. Let us figure out the top traps of SMSF-enabled investments.
A Few Relevant SMSF Questions
Within the ambit of this article, let me field a few pertinent SMSF questions.
Taxpayers Australia Concerned About Robo-advice
In an article for the website Accountants Daily, Miranda Brownlee talks about the apprehension Taxpayers Australia has in regards to the robo-advice and why the organisation feels banks might shrewdly manipulate them to highlight their own SMSF products.
While the not-for-profit body is not worried about various independent groups reaping the benefits of the robo-advice formula, it feels that the big institutions entering the robo-advice niche could spell trouble. With little or no hint of the algorithms used, the big institutions might use the space to give their own products a boost.
You can read the original article here.
New Legislation Clear on Limited Recourse Borrowing
An article on the website Professional Planner talks about a new legislation which deals with the limited recourse borrowing arrangement (LRBA). While the bare trustees are involved in the acquisition of assets through LRBA, the ATO feels that what is being referred to as a bare trust can be a holding trust in actuality.
There are certain tax issues that could arise out of the present imbroglio. These include, but may not be restricted to, 1) whether the holding/bare trust requires filing a separate IT return 2) whether first party can claim interest deductions 3) CGT events of the nature E2 and E5 and 4) issues pertaining to franking credits.
You can read the original article here.
