Published on 28 May 09
by VICTORIAN DIVISION, THE TAX INSTITUTE
As the transitional rules for geared unit trusts draw to a close, a new age of direct borrowing by superannuation funds has arrived. Following recent falls in asset values, trustees of superannuation funds are increasingly turning to alternative investments.
This paper discusses tips and traps in documenting and structuring instalment warrant arrangements, including:
- trust deeds, loan agreements and guarantees
- stamp duty and tax considerations
- dealing with the banks
- borrowing where there are multiple purchasers
- borrowing where property improvement or development is intended.