Restrictions still apply for instalment warrants
The Australian TaxationOffice has issued a taxpayer alert warning investors to be careful when entering into certain limited recourse borrowings to acquire assets for their self managed super fund (SMSF), as they may not comply with current superannuation laws.
Despite recent changes to super laws that relaxed previous bans on SMSFs borrowing money to purchase assets, a number of restrictions still apply.
“We are concerned where borrowings feature non commercial interest rates, or where there is capitalisation of interest, or where members provide personal guarantees secured beyond charges over the asset purchased,” Tax Commissioner Michael D’Ascenzo said.
According to D’Ascenzo, the limited recourse borrowing arrangement does not apply to existing SMSF assets and instalment warrant investments by way of ‘shareholder application’ or ‘cash extraction’ arrangements are still not allowed.
Recommended for you
The corporate regulator has issued infringement notices to three AFSLs whose financial advisers provided personal advice to a retail client while unregistered.
Rather than taking a controlling approach, the latest generation of overseas private equity deals is helping advice firms to achieve their growth ambitions, three commentators have said.
Private wealth firm Fitzpatricks Group has appointed a newly created head of product, who previously spent 20 years at CFS, to bolster its range of investment options.
The Financial Services and Credit Panel has made a written direction after advice regarding non-concessional contributions meant an individual was forced to withdraw over $330,000 from their super.
