All the publications reviewed in this ClearLaw, show that — particularly in relation to SMSFs and borrowing — important aspects of the regulatory approach are becoming clearer. And the new federal Government and the ATO seem to be singing the same tune.
For those interested in limited recourse lending, the regulatory approach is moving in the right direction.
Taxpayers and their advisers should always exercise caution. As the detail in this particular area continues to be completed, the need for caution applies particularly to the area of limited recourse borrowing by SMSFs.
Only time will tell whether the commonality of thinking between the new Government and the ATO concerning SMSFs will translate into changes to the new borrowing rules. Perhaps the budget on 13 May 2008 will give us a clearer picture.
If you have any questions in relation to this article, or trusts, superannuation or tax generally, please call Maddocks in Melbourne on (03) 9288 055 or in Sydney on (02) 8223 4100 and ask for a member of the Maddocks Commercial Team.