SMSF administration

The 10 Commandments of SMSF Administration

There are currently about 430,000 SMSFs in Australia and unfortunately only a very small proportion are actually operated and managed as efficiently as they should be.

This article looks at the top ten ‘commandments’ SMSF trustees and SMSF administrators should abide by to ensure their SMSFs not only comply with the plethora of regulations, but also provide the best possible outcomes for SMSF members throughout their lives.

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Utilising insurance cover within your SMSF

Insurance is an essential component of any successful wealth building strategy and more importantly it ensures that you and your family will be looked after in the event of serious illness, accident or death.

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Can you renovate a property purchased under a SMSF limited recourse loan?

Can a SMSF renovate a property that has been purchased under a limited recourse loan arrangement?
Following the changes made to the super borrowing laws that came into effect on the 7th of July 2010, one of the major items which both investors and advisers have been chasing clarification on is whether a property can be renovated when purchased under such an arrangement.

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SMSF limited recourse borrowings from related parties

Utilising a loan from a related party of the SMSF instead of, or in addition to, can provide the following advantages when compared to obtaining a limited recourse loan from a bank:

Reduced upfront costs, reduced ongoing costs, flexible repayment terms, interest is paid to a related party rather than banks with multi-billion dollar profits, younger SMSF members can inject capital to purchase property without it being trapped until they retire, high value assets can be transferred to a SMSF without exceeding the contribution caps and tax deductible contributions can be spread over a number of years and the ability to correctly and legally develop property within a SMSF using borrowings.

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ATO provides further guidance on SMSF borrowing rules

The ATO has recently released a series of interpretative decisions about SMSFs using limited recourse loans to acquire investments such as residential and commercial investment properties.

This article gives a brief plain English summary of what each ruling is about and the impact it has on investors looking to use their super to buy property.

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