Family Trusts & SMSF's ..



From: Curious Onlooker

Hi all,

Does anyone know if Family Trusts and/or Self-Managed Super Funds can invest in IP's, taking the usual IO loan etc?

Any good web references regarding either of these entities would be appreciated.


Curious Onlooker
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Reply: 1
From: D R

Hi There,

As far as SMSF go you cant leverage with them. Everything you buy must be free of borrowed money. So if you want to buy a 300k IP then the SMSF must be 300+k in size.

Trusts can leverage no worries. You guarantee the loan to the corporate trustee which then guarantees the loan to the trust assuming you are a director of the Company.


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Reply: 2
From: Terry Avery

Super Funds are not allowed to borrow money. The loophole was they could
invest in unit trusts who are allowed to borrow so you had to set up a unit
trust and a super fund. However, the tax office caught on to this and I
believe they have now closed the loophole but you should seek professional
advice on this in any case.
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Reply: 2.1
From: Paul Zagoridis

Yes they created a related party rule that said you couldn't invest more than 5% in a related party.

There are ways of complying with that as well

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