The Biking Broker Newsletter - 20th October 2011

ATO Changes to SMSF Rules a Positive Step for Property Investing

Over a third of Australian superannuation funds are held within Self Managed Superannuation Funds (SMSF), with the average size of each fund about $960,000.  Legislative changes in 2007 have allowed SMSF owners much more flexibility in how they invest their money, including buying residential property.

Buying a property within your SMSF has just become more attractive with the ATO releasing a draft ruling allowing funds from your SMSF to be used to improve a property and conduct repairs to recently acquired property.  This will ultimately have the effect of broadening the the available properties that you can purchase within SMSF as the previous restriction essentially limited purchases to new properties that didn’t require any modification to offer a good rental return.  Find more information on the ATO ruling here>>. Download ruling SMSFR 2011/D1  from the ATO.

One commentator suggests these changes will have a major positive effect on the rental availability and affordability as investors  increasingly enter the property market as part of their SMSF investment strategy.

If you’d like more information on these changes and how to use a SMSF to improve your post retirement financial position, drop me a line!