Latest News

Hot Issues
spacer
Our 2021 Advent Calendar.
spacer
State and Federal COVID-19 support
spacer
ATO flags focus areas for combating $33.5bn ‘tax gap’
spacer
Business Resources - Grants, Assistance, Resources and more.
spacer
Employee Christmas Parties and Gifts – Any FBT?
spacer
FBT – Christmas Parties and Taxi Fares
spacer
How the best firms are supporting the mental health of their employees
spacer
Asian Economies (1960 - 2020)
spacer
Making the festive season less taxing
spacer
Why more Millennials are turning to SMSFs
spacer
Company directors must register - all you need to know
spacer
Hardship priority processing of tax refunds
spacer
Business valuations: Tips, tricks and traps
spacer
Government moves to scrap SG $450 threshold
spacer
World's most productive countries
spacer
Superannuation changes - Superannuation guarantee (SG)
spacer
Unused Super Contributions
spacer
Main residence exemption myths and misconceptions
spacer
ATO extends COVID-19 relief for SMSFs
spacer
Treasury consults on increase to charities financial reporting threshold
spacer
Greenhouse gas emission by country since 1880
spacer
ATO announces STP Phase 2 blanket deferral
spacer
Reminder: super changes for the 2021 financial year
spacer
Recontributions of COVID-19 early released super
spacer
Working from home during a COVID-19 lockdown: Can you claim a tax deduction for rent?
spacer
Lockdowns and mental health
spacer
Unemployment rate falls to 12-year low
spacer
ATO issues warning to first-time investors
spacer
World's largest armies 1816 - 2020
spacer
Extra 'super' step when hiring new employees
spacer
Pitfalls and proposed changes in the use of R&D tax incentives
spacer
Government expands SME loan scheme eligibility
Article archive
spacer
Quarter 3 July - September 2021
spacer
Quarter 2 April - June 2021
spacer
Quarter 1 January - March 2021
spacer
Quarter 4 October - December 2020
spacer
Quarter 3 July - September 2020
spacer
Quarter 2 April - June 2020
spacer
Quarter 1 January - March 2020
spacer
Quarter 4 October - December 2019
spacer
Quarter 3 July - September 2019
spacer
Quarter 2 April - June 2019
spacer
Quarter 1 January - March 2019
spacer
Quarter 4 October - December 2018
spacer
Quarter 3 July - September 2018
spacer
Quarter 2 April - June 2018
spacer
Quarter 1 January - March 2018
spacer
Quarter 4 October - December 2017
spacer
Quarter 3 July - September 2017
spacer
Quarter 2 April - June 2017
spacer
Quarter 1 January - March 2017
spacer
Quarter 4 October - December 2016
spacer
Quarter 3 July - September 2016
spacer
Quarter 2 April - June 2016
spacer
Quarter 1 January - March 2016
spacer
Quarter 4 October - December 2015
spacer
Quarter 3 July - September 2015
spacer
Quarter 2 April - June 2015
spacer
Quarter 1 January - March 2015
spacer
Quarter 4 October - December 2014
Quarter 4 of, 2018 archive
spacer
Tax Office sounds alarm on popular property strategy
spacer
Our Advent calendar for 2018
spacer
‘Please do not panic’: ATO boss addresses STP concerns
spacer
Stop!! Don't do a paper Budget, use our online budgeting tools instead.
spacer
Employee Christmas Parties and Gifts – Any FBT?
spacer
Behavioural Coaching and your financial plans
spacer
FBT – Christmas Parties and Taxi Fares
spacer
Information needed to be the BBQ expert.
spacer
Tax consequences of trust vesting
spacer
Fringe Benefits Tax (FBT): employees’ private use of vehicles
spacer
ATO to contact clients over bank details
spacer
ATO claws back $850m in unpaid SG in FY 17-18
spacer
Appetite for property in SMSFs shows signs of life despite tough market
spacer
Superannuation gender gap narrowing, research shows
spacer
Identification numbers for directors
spacer
How financial advice helps create wealth.
spacer
Australia's vital statistics
spacer
Unlocking equity crowdfunding in Australia
spacer
$20m boost for SME clients looking to exporting
spacer
Work-Related Expenses
spacer
ATO updates crypto guidance
spacer
ATO zones in on hundreds of newly created reserves
spacer
Senate passes $20,000 instant asset write-off extension
spacer
Victorian Vacant Property Tax
spacer
Director Penalty Notices
spacer
ATO set to pounce on undisclosed income streams
Appetite for property in SMSFs shows signs of life despite tough market

Interest in property investment from younger SMSF trustees continue to hold steady despite tighter policy controls around SMSF lending and some banks exiting the space altogether, says one mid-tier firm.

       

 

Pitcher Partners managing director Michael Minter said while the SMSF lending space has faced much tighter lending controls this year, particularly following the royal commission, the idea of using super to buy property within a super fund remains appealing to SMSFs from generation X and Y.

This comes despite the latest data from APRA showing that investor home loan approvals dropped by 12.4 per cent over the quarter, representing 31.1 per cent of new home loan approvals – a total of $117.5 billion.

Interest-only loans now represent 16.2 per cent of new home loan approvals, a 54.9 per cent pe in the last quarter.

While there are important risks to consider, Mr Minter said younger SMSF trustees are still attracted to holding property in super for some of the benefits associated with it, including a lower tax rate on SMSF income, a lower capital gain tax rate and tax deductions such as insurance premiums.

Mr Minter said there are two main types of generation X and Y investors.

“The first is the business owner who currently paid rent, but would prefer to buy a property, and have the rent paid into their super fund. The second wants to build their super balance through strategic property investments by borrowing and gearing,” he said.

He warned that there are important considerations that need to be made before undertaking property investments in super or an SMSF, however.

Practitioners, for example, he said, need to review their client’s financial goals current financial situation and tax obligations.

“Compare their current super fund against running an SMSF. Investment carries risk and the client must decide what level of risk you are comfortable with,” he said.

He also noted that $200,000 is the preferable amount to start an SMSF.

“Before making any property investment, the client should establish a set of investment criteria that they are comfortable with, including whether it’s residential or commercial, local or elsewhere or big or a mix of smaller properties. But whichever approach you adopt, research the options and the market thoroughly,” he said.

 

SMSF Reporter
23 October 2018
accountantsdaily.com.au

 

© O'Brien and Partners 2011 - All Rights Reserved | 91 Station Street, Malvern VIC 3144 | Tel: 03 9509 3911 | Fax: 03 9509 3922