Presented by Liz Westover CA
Presented by the Institute's Head of Superannuation; Leadership & Quality, this session will provide you with an update on key developments and anticipated changes that affect self-managed superannuation fund (SMSF) service providers and their clients. With an eventful last 12 months, change is expected this year and this presentation will give service providers the opportunity to find out what might be in store for SMSFs and their trusted advisers as they start to make plans for the future.
Presented by James McPhedran
Since the Government made a significant move to allow the trustee of a superannuation fund to borrow in 2007, there have been several rulings from the Commissioner and some recent changes to the law, in particular SMSFR 2011/D1.
This session will provide, through practical examples and case studies, an overview of the current borrowing rules and will examine the key concepts of:
- What is a 'single acquirable asset'?
- The difference between a repair and an improvement
- Replacement/different assets discussed within SMSFR 2011/D1.
Presented by Aaron Dunn
The ability to borrow using an SMSF continues to attract interest as a strategy to acquire both residential and commercial property. However, each property transaction needs careful analysis to better understand the pros and cons of investing inside or outside of an SMSF. This session will explore the analysis of SMSF limited recourse borrowing through a case study, including taking a detailed look at the key sensitivities that make this strategy attractive to SMSF trustees. The session will also work through a range of case studies to explore some of the strategies available using SMSF limited recourse borrowing.
Presented by Peter Townsend
With design being so critical, particularly for financing transactions, this session will, by way of case studies, illustrate the range of key design features which must be considered for any limited recourse borrowing arrangement (LRBA), including whether:
- The borrowing is to be obtained via a related party or a non-related party lender
- The property is locally or foreign based
- The borrowing is obtained directly or indirectly
- The loan is to be fully drawn down and also for subsequent maintenance and repairs.
This session will also examine where the common problems may arise and how to manage these problems if they arise.
Presented by Michael Hallinan
There are various tax and legal issues associated with using a LRBA to acquire a property, and as such, it is vital that careful planning is taken to ensure that they are managed effectively.
Some important considerations include:
- What if the relevant functions are performed by the wrong parties?
- What if the document sequence is out of order?
- What if the custodian is the borrower?
- What if the custodian is taxed as a trustee?
Recognising, understanding and managing the various tax and legal issues, will be illustrated by a walk-through of the various stages of a limited recourse borrowing transaction from commencement, operation and then the unwinding of the arrangement with the transfer of the title to the fund or its sale to a third party.
Presented by Peter Townsend
Now that the borrowing arrangement has been implemented, what are the external events which may undo the arrangement, such as:
- What would happen on the principal's death?
- What would happen if there is a partnership breakdown?
- What would happen if there was an insolvency or default on the loan?
Having considered these and other potential events in the planning stages of the arrangement will permit risk management strategies to be considered and implemented as appropriate.
This session will, by way of case studies taking into account external events, illustrate strategies for the management of risk to minimise any adverse impact.