While the more sane among our institutions are warning about SMSF property, the ATO is hard at work making it easier. From Banking Day:
The Australian Taxation Office has cleared up an area of confusion for the trustees of self-managed superannuation funds who plan to borrow. Trustees have been unsure whether trusts set up as part of SMSF borrowing arrangements might breach the rule that prohibits investments in “in-house assets”…
A partner at Gadens Lawyers, Amber Warren, said in a note to clients: “Under the [ATO’s] instrument, an investment by an SMSF in a related trust in compliance with [the borrowing provisions of the act] will be exempt from being an in-house asset.”
The more things change, the more they stay the same.
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