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


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.

Author profile:

Daniel Jenkinson ATI
Daniel Jenkinson is a principal at DMAW Lawyers, practising in corporate and commercial law, with a particular focus on superannuation and financial services. He has had a particular interest in superannuation for more than 10 years and regularly acts for the trustees of APRA regulated funds, public sector funds, SMSFs, employers, accountants and other advisers in connection with all aspects of superannuation law. Daniel is a member of The Tax Institute’s Technical Resource Committee (SA). Current at 10 February 2016 Click here to expand/collapse more articles by Daniel JENKINSON.
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