Just to clarify Section 67(4A) of the SIS Act which covers the new legislation states at subsection (ii)
"(ii) is not an asset the RSF trustee is prohibited by this Act or any other law from acquiring;
is held on trust so that the RSF trustee acquires a beneficial interest in the original asset or the replacement"
Therefore it is critical under the new rules than a separate trust, now being referred to in professional circles as a debt instalment trust or debt investment tust must acquire and hold the asset whilst the borrowing is in place.
The super fund cannot hold the asset and gear in its own right under the new rules in Section 67(4A)
Mike
You are correct with regards to the SIS legislation. September 2007 saw the resulting legislation receive Royal Assent and become law. Tax Laws Amendment (2007 Measures No. 4) Act 2007 inserted Section 67(4A) of the SIS Act which amends the borrowing restriction contained in the Act to allow superannuation funds to invest through an investment trust vehicle with limited recourse over any asset a fund would be permitted to invest in directly.
Richard Taylor | Australia's leading private lender
Richard,
Yes Justin Frohnert summarised it well. http://www.superliving.com.au/StoryView.asp?StoryID=122512
You must be logged in to reply to this topic. If you don't have an account, you can register here.
