Offset accounts and SMSF

Does anyone know, for a property not bought in a SMSF via installment warrants, whether you can allocate the offset account to a SMSF?

I presume if it was, once the money went into the offset, it would have to stay there.
 
pretty sure u can if the lender will allow it

I recall (but not sure) that we have done this with STG .

Once the funds are in the SMSF offset account though I wpuld think thats a contribution and needs to stay there

ta
rolf
 
Thx Rolf. The accountant says a flat no, but I think she is looking at it as contributions into a non SMSF account that can be later withdrawn......and not from the angle of the account being part of the SMSF.

Continuing on this theme, can one offset account be used for multiple loans through the same lender?
 
if the account isnt in the same name as the loan, I dont believe anyone will do offset in a name diff to theloans

while an offset can be pointed to various loans, only one at the time.

ta

rolf
 
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Does anyone know, for a property not bought in a SMSF via installment warrants, whether you can allocate the offset account to a SMSF?

I presume if it was, once the money went into the offset, it would have to stay there.

Hi Winston,

Feel free to give one of our SMSF specialists a call and they can run through these questions with you in more detail.

Regards

Paul

Tax Effective Accountants
 
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Hi Paul

Welcome

We try as much as possible to retain the discussion here, rather than drag the information to another area thats not publically available otherwise we become just another yellow pages.


ta
rolf
 
That wasn't very helpful Tax Effective.

I realise that everyone's circumstances can be vastly different and so therefore different advice is applicable, but using your first post to flog your business is poor form in my opinion. If you do in fact have a clue about this field, how about providing some general advice so that it not only helps the original poster, but others who may have a similar query.
 
Feel free to give one of our SMSF specialists a call and they can run through these questions with you in more detail.

Thanks for the offer Paul. I've checked your website and I'll pass on your offer. Personal relationships mean more to me than corporate branding and website facades. And your website omits key personnel and their experience. I have to presume their experience and/or reputation is not a key marketing strength.

The other option is that they build a reputation on Somersoft by answering questions over several months. That will give the forum better insight into the strengths of your organization's specialists.
 
if the account isnt in the same name as the loan, I dont believe anyone will do offset in a name diff to theloans

while an offset can be pointed to various loans, only one at the time.

ta

rolf

Thx.

What I am thinking of here, is a way to deposit super contributions (cash) into an offset account.....and the account have the flexibility to apply to traded and/or accumulated securities (property titles).

This could make super contributions work a bit harder.

I take your point that the account can only apply to one security at a time.
 
Does anyone know, for a property not bought in a SMSF via installment warrants, whether you can allocate the offset account to a SMSF?

I presume if it was, once the money went into the offset, it would have to stay there.

Again ... even if some lender would allow a non-SMF offset be linked to a SMSF loan account, it would be breaking the in-house assets rule.

You are providing a financial benefit to your SMSF by parking personal funds in YOUR offset.

With loans, the entire amount and not just the interest is counted towards the 5% rule.

Cheers,

Rob
 
Again ... even if some lender would allow a non-SMF offset be linked to a SMSF loan account, it would be breaking the in-house assets rule.

You are providing a financial benefit to your SMSF by parking personal funds in YOUR offset.

With loans, the entire amount and not just the interest is counted towards the 5% rule.

Cheers,

Rob

I don't mean a smsf loan Rob....The other way around mate.....a non SMSF investment loan, that the bank permits the offset account to be within a SMSF. The SMSF is then not getting the reduced interest benefit.
 
I don't mean a smsf loan Rob....The other way around mate.....a non SMSF investment loan, that the bank permits the offset account to be within a SMSF. The SMSF is then not getting the reduced interest benefit.

So what you are saying is that you have an existing IP and loan in your own name, and you want to use the offset account in the super fund. The super fund would place its funds in there, and those funds would offset the interest in your own name?

If that is the case, the answer is no. You would fail the audit and risk the fund going non-compliant.
 
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So what you are saying is that you have an existing IP and loan in your own name, and you want to use the offset account in the super fund. The super fund would place its funds in there, and those funds would offset the interest in your own name?

If that is the case, the answer is no. You would fail the audit and risk the fund going non-compliant.

Thx Mry. You've understood the question correctly.
 
Does anyone know, for a property not bought in a SMSF via installment warrants, whether you can allocate the offset account to a SMSF?

I presume if it was, once the money went into the offset, it would have to stay there.

It depends on your lender.

If your super fund had a STGeorge home loan
you would be entitled to an offset account.
This means opening a savings account in your SMSF's name and linking it to the SMSF's loan.

The offsets will benefit the SMSF but the savings IMO can be your own.
As long as you don't mix those savings with your SMSF business account it should be ok.

This is not an interest bearing account so from the tax/accounting point of view the funds are not visible and you can withdraw them as and when required.
 
hi
I think you have the bull by the horns here
the question seems to be bit difficult to answer because youa re asking if its not a smsf
well lets just explain a smsf
a smsf is a self managed super fund and its not a vehicle to park money or find away of putting your money if its not thru a smsf
you seem to be asking If I park my money and claim as part of a my smsf
well lets get back to the ato
what the reason for the investment
or in this case the smsf
is this money there as a investment not for you but for your smsf
and to me it seems not
now if its not the yes its non compliant and also you look at a bit of a fine
remember smsf or ato its the reason not the vehicle thats the issue.
using offset accounts are fine but they have to be for smsf investing or reducing debt not reducing tax or pushing left side margins, profit or costs
just look at a smsf as say amp or host
can you do what you want to do with your amp or host contribution if the answer is no then look again
if you do become non compliant the costs are very large and the fines are a bit big also
don't try to be to smart with smsf
as the ato and half a dozen other departments love to follow them.
a smsf is not your money nor your investment until 60 or 65 yes you control it but its aimed not at you skimming off the top its a straight forward invest vehicle and should be use that way.
if you did do as you have posted
I think that a you would be non compliant
b the interest plus penalty would be a worded
c there would be questions about the smsf poart ownership of the ip as it invested the money
and if the ato got nasty not saying they would but the could ask the property to be sold to recoup the penalty and costs as it had the money in the offset account which should not have been there in the first place
You are opening a can of worms that you do not wish to open
SMSF
remember the letters and what they mean
not
SMSFRT
self managered super funds reduce tax bit different
 
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