Miscellaneous 2011

Self-managed superannuation funds and real property -Changes to the borrowing rules

Source: Taxation In Australia Journal Article

Published Date: 1 Apr 2011


Amendments to the Superannuation Industry (Supervision) Act 1993 (which have effect from 7 July 2010) are designed to reduce the risks for superannuation funds investing in limited recourse borrowing arrangements. While the amendments to the Act provided clarification in respect of many requirements for complying loans and introduced sensible flexibility, they have created confusion and uncertainty in respect of certain issues concerning real property. Those issues include confusion over what might qualify as a "single" acquirable asset that can be acquired with a complying loan, whether any improvements to real property are permitted,
and what happens when a complying loan has been repaid. This article examines these areas of uncertainty, and considers the ATO's views on these matters.

Sorry, this is subscriber only content.

To gain access to this material and much more - Subscribe Now.

(Note: Members can access Taxation in Australia journal articles without a Tax Knowledge Exchange subscription - please log in to access).

Already a Subscriber? Login now


The material is copyright. Apart any fair dealing for the purpose of private study, research criticism or review, as permitted under the copyright Act, no part may be reproduced by any process without written permission from The Tax Institute.

Unless expressly stated, opinions are not that of The Tax Institute, which accepts no responsibility for the accuracy of any of the information contained within it.

The Tax Institute
(ABN 45 008 392 372 (PRV14016))


The Tax Institute is a Recognised Tax Agent Association (RTAA) under the Tax Agent Services Regulations 2009. 

Copyright Statement

All materials provided on this site are protected by copyright and are owned by or licensed to TTI.

Except as expressly permitted by TTI or the copyright owner, any person or company who uses this site must not use, reproduce, redistribute, retransmit, publish or otherwise transfer, or commercially exploit, the materials or any information, software or other content, in whole or in part, which is available through this site.


Miscellaneous 2011

Share this page