Have you noticed the interest rate landscape is changing?

Posted by Norman Howe on 22-Aug-2017 10:20:08

 

A couple of years ago we were in the golden age of borrowing and investing. Interest rates were at record lows and as an investor you could have as many properties as you liked on interest only loans with these ridiculous interest rates. Have you noticed the interest rate landscape is changing?

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Topics: Wealth Creation, SMSF, Investor

Super battle continues - Treasurer in denial about retrospective changes

Posted by Norman Howe on 19-May-2016 14:55:19


Public backlash following the proposed super changes has both sides of politics seemingly ducking for cover over their respective changes to super. 

Each side is focusing on the taxing aspect when the real issue is about the retrospective nature of the proposed changes and how this impacts on the current contributions cap.

Doesn’t seem fair if you are in your 50’s and planned to maximise salary sacrifice super savings over the next 10 years.

Some argue the proposed super changes by government and Labor are a poor choice, so “let’s compare the pair” and if any of this really is retrospective.

Labor's policy: Plans to intorduce tax on super pension earnings above $75,000.  Mind you this is on balances accumulated in the past under existing rules, this is also retrospective. 

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Topics: Budget, SMSF, Superannuation, Tax

Budget changes to Super - Bad Policy?

Posted by Norman Howe on 10-May-2016 17:38:45

Fairness is the current political currency catchcry, so how is retrospective super rule changes fair?

Some say Scott Morrison’s 2016 Federal budget attack on superannuation is an ill-advised disguised attempt to raise revenue to balance the books and repair the budget, at the expense of hundreds of thousands of super members who trusted a government that said no changes to super at the last election.

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Topics: SMSF, Superannuation, Wealth Creation

Murray report: SMSF borrowing ban stirring questions

Posted by Azure Group on 04-Jan-2015 17:22:00

The recent Financial Systems Inquiry report saw a number of recommendations that could significantly change the economic landscape of Australia. One of the most talked about recommendations was that of banning SMSF borrowing due to the risk to the taxpayer should the fund collapse. Whilst our blog post The Financial System Inquiry: How does it affect you? summarised the main recommendations coming out of the report, we thought the banning of SMSF borrowing warranted a dedicated post. 

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Topics: Legislation, SMSF

The top 10 frequently asked questions - SMSFs

Posted by Norman Howe on 29-Apr-2014 16:21:00

Azure Group Wealth's Managing Director, Norman Howe, gives the latest Wealth 101 video and answers the frequently asked questions regarding SMSFs, and covers the reasons for setting up an SMSF, the costs involved, the legal requirements, and investing in property.

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Topics: SMSF, Wealth Creation

SMSF Trustees - Avoid the liquidity trap

Posted by Norman Howe on 17-Sep-2013 14:54:00
  • Are you the trustee of a self-managed super fund (SMSF)?
  • Do you have any large assets that may be difficult to sell or divide between fund members?
  • Do you have a plan for distributing cash to a member or a beneficiary when you need to?

How does it work?

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Topics: SMSF

SMSF and investing in the US property market

Posted by Kelly Morgan on 12-Sep-2012 14:51:00

The attractiveness of investing in the US with the current low property prices is obvious. What steps do you need to take to invest in your SMSF and not fall foul of the SIS Act and the ATO?

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Topics: SMSF

Correctly report SMSF personal contributions

Posted by Kelly Morgan on 14-Feb-2012 14:22:00

It is imperative that the correct reporting procedures are followed when reporting personal contributions made to a self managed superannuation fund (SMSF).

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Topics: SMSF

Limited recourse borrowing arrangements for SMSFs

Posted by Kelly Morgan on 16-Nov-2011 14:40:00

Normally a SMSF is restricted from borrowing money to purchase assets to be held by the fund (S67 of the SIS Act). However there is one exception to this ruling, which is a Limited Recourse Borrowing Arrangement (LRBA).

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Topics: SMSF

Repair v improvement in a SMSF property asset

Posted by Azure Group on 18-Oct-2011 14:43:00

On 14 September 2011, the ATO issued a draft SMSF ruling 2011/D1 setting out the boundaries applying to a limited recourse borrowing arrangement (LRBA) for purposes of maintaining and/or repairing the SMSF’s real property investment as opposed to improving the real property which is not allowed under the current draft ruling.

The money borrowed under the LBRA and secured by the real property asset may NOW be applied to not only acquiring the asset but also repairing and maintaining asset now or in the future.

However, no amount that has been borrowed by the SMSF trustee under the LRBA may be applied to improve the asset.

If the borrowings are applied to improve the asset; the borrowings will contravene S67 of the SIS Act. This means the SMSF will be at risk to be deemed to be a non-complying fund and therefore the tax concessions normally applied to a SMSF may be revoked by the ATO.

However, other funds apart from the borrowings of the SMSF may be used to improve the asset, if the trustee desires.

The ATO gives clear guidelines and examples as to the meaning of the three important terminologies under the rule which are summarised below:

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Topics: SMSF