- Can I borrow money, to say by a house or shares? Yes. Now you can. A Superfund can now borrow money as the rules changed recently. However, there are a number of rules to be followed and the structure is not simple. OR, there is still a complex arrangement involving a Unit Trust, where borrowing can be made to buy residential and commercial property or Publicly Listed Investments. eg Shares (If interested, contact us for a more thorough discussion on this.)
- Can I use the money in the Superfund to buy a residential house ? Yes. In fact, even if you don't have enough to buy it all, you can buy it as "Tenants in Common" with say yourself, and you can borrow the rest of the money. However, this ownership is then fixed and cannot be easily adjusted. OR Now there is also a Property Trust structure that makes borrowing possible.
- Can I transfer investments I have in my own name into the Fund ? Yes. But not residential property (for some strange reason). Publicly Listed Investments and commercial property are OK. BUT, there is an effective sale, so Capital Gains Tax will apply.
- Can I claim any of this transfer in as a tax deduction ? Maybe. Depends upon your situation to meet the criteria. Please contact us to discuss.
- Can I transfer to this fund from my existing Superfund ? Yes. This is called a rollover. The main area to be careful of however, is when rolling over Commonwealth Employee Super. This would need careful consideration as it is often best left to get the full benefits.
- What about Allocated Pensions. Can I still do this ? Yes. This is more involved and would require further discussion, but basically this is not a problem.
- Can the children or other Family members be involved ? Yes. They don't even have to be family. However, for a number of reasons it is best to only have Family. Using parents and the children in the same fund has tax advantages. Contact us for further explanation if interested.
- When can I access my money? After 1 July 2007, this can be anytime after age 55 (if born before 1/7/1960), whether you are still working or not. However, until age 65, this can only be done as a "Transition to Retirement Pension" if you are still working, (not as a lump sum) unless you are also retired, and it is still taxable, although with a 15% tax rebate. After age 60 it is tax free. After age 60 it can be accessed as a Pension or Lump Sum, if you are fully retired, and it is completely tax free. (If born after 1/7/60, the preservation age is delayed progressively, up to those born after 1/7/1964 can't access super until age 60)
- Do I have to take a Pension? Until 1 July 2007 you did, at age 65, if you didn't pass the work test. From 1 July 2007 you don't. You can just leave it there for as long as you like. However, the earnings will be taxed at 15%. But if you convert the fund to a pension fund, then the earnings are tax free. So the best option will depend on your personal circumstances.
GLR Accountants Pty Ltd is a Corporate Authorised Representative (ASIC Number 315869) of SMSF Advisers Network Pty Ltd (AFSL No 430062)
ABN 64 155 907 681 www.smsfadvisersnetwork.com.au
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