In September 2007 the regulations relating to Self Managed Superannuation Fund (SMSF) borrowing were relaxed. The borrowing arrangements now permitted within SMSFs are still subject to strict requirements. Borrowing within a SMSF ust be conducted through a limited recourse borrowing arrangement (LRBA). A LRBA requires the asset to be held in a specific holding trust until the loan is repaid to ensure other investments in your SMSF are not at risk.
Hall Chadwick Melbourne can assist clients to navigate the complex SMSF borrowing rules and provide specialist insight on the application of borrowed funds to property repairs and maintenance, and the regulations surrounding improvement to the property.
Our SMSF borrowing advisory services include:
- Regulations relating to borrowing to buy property, shares and funds using SMSF’s
- Limited recourse borrowing arrangements
- Holding trust requirements
- Property investment and the SMSF investment strategy and fund risk profile
- Rental transactions, interest and loan payments made by the SMSF
- Renovating SMSF held properties
- Running expenses relating to SMSF investment property
- Rules relating to acquisitions from related parties
- Compliance with SMSF trust deed rules and provisions
- Compliance with relevant taxation and trust laws
- SMSF property loans and associated costs
- Loan repayments from your SMSF and the effect upon cash flow
- SMSF taxation
- Sole Purpose Test requirements
- SMSF estate planning advisory
- LRBA Safe Harbour Rule compliance.
To discuss the implications of Self Managed Super Fund borrowing on your individual circumstances please contact Hall Chadwick Chartered Accountants Melbourne.