BLB News

Don't throw the SMSF out with the bathwater Part II - SMSFs Rock!

24/04/2019

Two very good news stories put the lie to all the negative nonsense talked about SMSFs by industry and retail funds and their political fan clubs. Peter Townsend reports.

Life's too Serious

24/04/2019

4 in-depth comments about Brexit (we're Australian, but we still know about these things)

The pitfalls of making a homemade Will

11/04/2019

While homemade Wills and Do It Yourself Will kits may appear to be an 'easier', 'timely' and 'cheaper' alternative than instructing a lawyer to draft your Will the recent Victorian Supreme Court case of Re Hely; Application by Arbuthnot & Donaghue [2018] is a reminder of some of the pitfalls which may arise when a homemade Will has been prepared. Elizabeth Wang outlines some of the issues.

Related party loan to SMSF - when is a loan not a loan?

11/04/2019

John is the sole member of his SMSF and is the sole director of the fund's corporate trustee. After seeking financial and tax advice on the benefits of owning a property in his SMSF, John decides to sell his investment property valued at $1m to his SMSF. As his SMSF's available balance is $200k short of the market value, he enters into a contract with the SMSF for a loan of $200k to fund its purchase using a limited recourse borrowing arrangement. In lieu of paying the loan amount to the SMSF, he received $800k as the vendor from the SMSF on settlement, the $1m sale price less his 'loan' of $200k to the fund. But is that $200k really a loan? Jeff Song explains.

Borrowing for your Fund

11/04/2019

With the exception of limited recourse borrowing arrangements ('LRBAs'), trustees of a fund are generally prohibited from borrowing money. LRBAs enable trustees to borrow from a third-party or related-party lender to acquire property. The property acquired is held in a separate trust, which is set-up exclusively for this purpose. In the event of default, the rights of the lender are limited to the acquired property alone.