It is fun, but very complex too.

Although it is very easy to issue and serve a statutory demand the next step could be very dangerous to the average punter.

What happens if they challenge it? You would need to either withdraw or front up to the supreme or Federal court ready to defend it.

If they don't challenge it then you will have to commence winding up proceedings and have an administrator appointed. Also in the Supreme/Federal Courts but much easier. Once this happens locks are changed and bank accounts are frozen and all the debts are paid or creditors are given partial or no returns at all depending on the assets of the company.

What if one came in with $3000 more in tax deductions – how much would that save you?

Don't use a company as there are adverse tax consequences.

You will probably need to set up several structures revolving around discretionary trusts.

If you were in Sydney I could speak to you further about this.

My wording was a bit vague here.

I should have said it is not people to have a SMSF with just one member who is sole trustee. One member funds with 2 trustees is possible.

Wonder where Jessie got that advice?

That was the second post in one day saying the same thing.

Ideally you should have done a deed of gift.

If you were to go bankrupt the trustee in bankruptcy may look at your bank statements and query the transaction. You would say it was a gift and they will argue that it was a loan and is due back to you. You could produce the minutes of the trustees showing they accepted a gift from you.

You mention transferring the money to the trustee account – where is it now? I think you may have used it to settle. Transferring it around and back again doesn't really change anything i think.

The Dark Knight wrote:

Thanks for the link Brady5 its got me thinking just a few questions for the pros on this subject out there.

Can you withdraw the profits if you bought a cashflow positive property or do you need to reinvest it within the superannuation limits?

Also how does the members thing work? Can unmarried partners pool their superannuation money together to purchase a property?

Yes, unmarried partners, married partners, people with mustaches and eunuchs can all join together joint together to form a SMSF. But you have to ask yourself can you work with other people all together?

Why not get both and use the best one?

How do you overcome the law that SMSF are prohibited to lend to members or associates of members, s 65 SIS Act

http://www.austlii.edu.au/au/legis/cth/consol_act/sia1993473/s65.html