Restrictions still apply for instalment warrants
The Australian TaxationOffice has issued a taxpayer alert warning investors to be careful when entering into certain limited recourse borrowings to acquire assets for their self managed super fund (SMSF), as they may not comply with current superannuation laws.
Despite recent changes to super laws that relaxed previous bans on SMSFs borrowing money to purchase assets, a number of restrictions still apply.
“We are concerned where borrowings feature non commercial interest rates, or where there is capitalisation of interest, or where members provide personal guarantees secured beyond charges over the asset purchased,” Tax Commissioner Michael D’Ascenzo said.
According to D’Ascenzo, the limited recourse borrowing arrangement does not apply to existing SMSF assets and instalment warrant investments by way of ‘shareholder application’ or ‘cash extraction’ arrangements are still not allowed.
Recommended for you
The central bank has released its decision on the official cash rate following its November monetary policy meeting.
ASIC has cancelled the AFSL of a Melbourne-based managed investment scheme operator over a failure to pay industry levies and meet its statutory audit and financial reporting lodgement obligations.
Melbourne advice firm Hewison Private Wealth has marked four decades of service after making its start in 1985 as a “truly independent advice business” in a largely product-led market.
HLB Mann Judd Perth has announced its acquisition of a WA business advisory firm, growing its presence in the region, along with 10 appointments across the firm’s national network.
