Speculating with real property paper

Published on 26 May 08 by SOUTH AUSTRALIAN DIVISION, THE TAX INSTITUTE

The removal of the RBL caps coupled with cashings from super funds being tax free after age 60 gives rise to different dynamics for SMSF trustees in their investment decision making. This can be expected to bring a fresh focus to the threshold issue of the functions to be performed by SMSF trustees. Is their function to make passive income producing investments on a risk adverse basis? Alternatively is it open to trustees with real property and entrepreneurial capabilities to utilise those capabilities in the discharge of their trustee duties? This also gives rise to a demarcation issue as to what is properly the trustee function and what is more appropriate by way of third party service provision. These are important technical and practical issues which trustees, their advisers and the Regulator will need to be focusing on in the near future. Topics covered in this paper include:

• abolition of RBLs and incentive to optimise returns
• when is income non arms length income?
• can SMSFs conduct property developments/subdivisions?
• can trustees utilise their "day job" expertise?
• when is the trustee acting as trustee as distinct from service provision?
• documentation of related party dealings.
  

Author profile

Stephen Heath CTA

Stephen Heath, CTA, is a Partner in the Taxation & Revenue section of Wallmans Lawyers, with his principal practice areas being superannuation and tax. He also works on general commercial matters with a focus on tax planning, business structuring and insurance. Steve is a recent past member of The Tax Institute’s State Council and National Council. - Current at 08 July 2019

More by Stephen HEATH

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• Maximising the benefits offered by SMSF structures case study and solutions paper - 01-November-2012
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• Real property: CGT issues - technical paper - 19-February-2008
• Superannuation - real property paper - 18-September-2007
• Professional practices: setting the scene paper - 31-July-2007
• Simply super - getting it out paper - 04-May-2007
• Superannuation pensions: planning opportunities pre and post 31 December 2005 paper - 21-November-2005
• Stephen Heath's Market value: a vital tax concept paper - 05-May-2005
• Superannuation and Estate Planning seminar paper - 19-August-2004
• Tax Strategies & Superannuation Investments seminar paper - 09-June-2004
• Tax & Succession Planning for Self Managed Super Funds seminar paper - 25-November-2003
• Buying and Selling a Business seminar paper - 09-April-2003
• CGT - examining the events seminar paper - 30-January-2003
• Taxation of SMSF funds - 20-June-2002
• Exit Strategies - 07-June-2001
• Superannuation investment rules : Exposure draft Superannuation Legislation Amendment Bill (No 4) 1999 - 10-June-1999
• Staying on the straight and narrow: superannuation investment rules - 07-May-1999
• Superannuation and Estate Planning - 12-June-1997

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