<a href="https://www.apartments.com.au/developers/sunland-group">Sunland Group</a> has officially lodged plans for its first Gold Coast apartment project since the departure of the Abedian family from the company three years ago, unveiling a new high-rise proposal for a prominent Broadbeach corner site on Old Burleigh Road.

The application was submitted by an entity directed by Tom Jamieson, stepson of longtime Sunland leader Soheil Abedian, and Riaz Rezvanipour, brother-in-law of Sahba Abedian, Soheil’s son.

Sunland acquired the 1,283 sqm site on the corner of Old Burleigh Road and Armrick Avenue for $9.5 million late last year and is now seeking approval for a <a href="https://www.apartments.com.au/new-apartments/99-101-old-burleigh-road-broadbeach-qld-4218">42-storey tower with 81 apartments</a>.

<img alt="First look: Sunland Group returns to Broadbeach with new Old Burleigh Road tower plans" data-entity-type="file" data-entity-uuid="fea2946d-90ee-4cfc-babe-2a8ad5db2cb6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/pers.png?VersionId=BV0fihJw31nDIQ8ozY_h3GbS8mxDyhnm" />

Designed by <a href="https://www.apartments.com.au/architects/contreras-earl-architecture">Contreras Earl Architecture</a>, the proposed tower at 99-101 Old Burleigh Road would deliver a predominantly larger-format apartment mix aimed at the owner-occupier market. Plans include 17 two-bedroom apartments, 55 three-bedroom apartments, and nine four-bedroom residences across 35 residential levels.

The development also incorporates three basement levels, four podium parking levels, two levels of communal recreation facilities, and rooftop plant and equipment. A total of 189 car spaces are proposed, significantly exceeding the 90 spaces required under the planning scheme.

The architecture adopts a sculpted, curvilinear form, with deep wraparound balconies and integrated landscaping intended to soften the tower’s vertical expression. The planning report states the building’s “slender footprint/form provides a complimentary yet varied built form within the local streetscape” and contributes to “a varied, yet ordered skyline.”

Contreras Earl noted in its Architectural Statement that from the early stages, the project addressed a fundamental challenge: how to accommodate the required residential yield while avoiding the conventional model of a tower sitting on a rigid, fully resolved parking podium.

“The most direct response would have been to consolidate parking into a singular, flat podium and extrude a repetitive tower above,” the statement said. “While efficient, this approach would result in a consolidated built form with limited engagement with the surrounding landscape and public realm.”

Instead, the conventional podium model was “deliberately rejected”. The architects described the base of the building as “a landscaped architectural condition where structure, planting and circulation are integrated”.

“Rather than presenting a continuous built mass, the base of the building is articulated through a series of concrete planter elements that organise the podium into a fragmented system,” the statement said. “This approach reduces the perceived bulk of the lower levels while establishing a more permeable interface with the streetscape and adjacent open space.”

<img alt="Sunland" data-entity-type="file" data-entity-uuid="923fad8d-c960-4527-8fbe-975cf1ddf88d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-25%20at%2010.32.03%E2%80%AFAM.png?VersionId=pngwb0hYOIUpq9vDw6F2EsOiVuHF3DiX" />

&nbsp;

The site sits within the High Density Residential Zone and inside the City of Gold Coast’s unrestricted “HX” building height area, where the planning framework anticipates intensified residential development tied to the expanding light rail corridor. The planning report notes the area is undergoing “transition toward more intense development forms” given its proximity to Broadbeach, Surfers Paradise, and high-frequency public transport infrastructure.

Positioned directly opposite Broadbeach Park and within walking distance of Florida Gardens light rail station, the development would sit among a rapidly evolving stretch of Old Burleigh Road that has become one of the Gold Coast’s most active apartment development corridors.

The application joins a growing pipeline of luxury residential projects reshaping Broadbeach, including nearby developments by 5Point Projects, Polycell, and Graya.

The planning report argues the project contributes toward the Gold Coast’s long-term housing targets under the South East Queensland Regional Plan, which forecasts the need for more than 100,000 additional high-rise dwellings across the city by 2046.

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The Abedian family departed Sunland Group in late 2023, ending a four-decade association with the company, and subsequently established the private development firm Abedian &amp; Co. The group is currently delivering <a href="https://www.apartments.com.au/new-apartments/greenmount-residences-cnr-hill-street-and-marine-parade-coolangatta-qld-4225">Greenmount Residences</a> at Rainbow Bay and recently launched <a href="https://www.apartments.com.au/new-apartments/18-mary-avenue-14-18-mary-avenue-broadbeach-qld-4218">18 Mary Avenue</a> in Broadbeach.
</section>

Joel Robinson

First look: Sunland Group returns to Broadbeach new apartment market with new Old Burleigh Road tower plans

The Minns Labor Government has established the new Bays West Delivery Authority to lead the development&nbsp;of the Bays West Precinct and Blackwattle Bay Precinct.&nbsp;

The Authority is charged with creating Sydney’s newest precinct, a thriving, connected, sustainable hub with White Bay Power Station as its cultural heart. Its vision is to build on the area’s natural, cultural and industrial history to shape a vibrant new neighbourhood.

The precinct will deliver up to 8,500 well-located homes, including a minimum of 10 per cent affordable and essential worker homes. Combine new housing with public open space, opening public access to the waterfront for the first time in more than 100 years, while retaining important deep-water facilities to support Sydney’s working harbour.

Located just minutes from the Sydney CBD and connected to a world-class metro, ferry, walking and cycling links, the Bays West precinct will rebalance housing growth towards well-serviced inner-city locations and help tackle the state’s housing crisis.

The Bays West Delivery Authority,&nbsp;an agency of the Department of Planning, Housing and Infrastructure, will report to the NSW Minister for Lands and Property who already has oversight of major precinct renewal projects including at Blackwattle Bay and Barangaroo.

As part of the broader Bays West transformation, the Minns Government recently announced that a proposal from Lendlease to redevelop part of the Bays West Precinct has progressed to Stage 2 of the NSW Government’s unsolicited proposals process.

<img alt="Sydney" data-entity-type="file" data-entity-uuid="2ed71eb9-d8e8-4fa7-b9d1-de4531dcf2f3" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-25%20at%209.42.31%E2%80%AFAM.png?VersionId=IDryFIbped9SNDg72LEN_EecvhUsOPvp" />

The Minns Labor Government has also confirmed the Bays West precinct will have a new suburb name. This will be the first major suburb built in close proximity to Sydney’s CBD in decades and will encompass the area currently being referred to as Bays West, including Glebe Island and the White Bay Power Station. Served by a new Metro station just five minutes from the CBD, it will become one of the most populous suburbs in the Inner West and one of Sydney’s premier cultural destinations.

An early works program is taking shape, which&nbsp;includes the first stages of an international design competition.&nbsp;

The aim of the Bays West&nbsp;International&nbsp;Design Competition is to&nbsp;ensure design excellence is embedded in the project from the start. The competition will deliver an&nbsp;urban framework that defines the character, ambition and long-term identity of&nbsp;this&nbsp;former industrial precinct as it transitions to a vibrant, inclusive and sustainable residential&nbsp;neighbourhood.

The competition will be led by the Bays West Delivery Authority in partnership with Government Architect NSW.&nbsp;

It will launch with an invitation for a global Expressions of Interest, before moving to an invitation-only stage that will be assessed by a panel that&nbsp;will provide advice to Cabinet who will select a winner.

Premier of NSW, Chris Minns said the establishment of the new Authority is the first step in transforming the Bays West precinct into a vibrant, livable suburb minutes from the Sydney CBD and two stops from Hunter St Station on the Metro West line.

“The Authority will deliver well-located homes close to the heart of the city and integrate the new precinct with Blackwattle Bay and the new Sydney Fish Market.

“This is a generational opportunity to build a new suburb on the city’s edge and open the harbour foreshore to the public for the first time in a century.”&nbsp;

Minister for Lands and Property Steve Kamper said the new Bays West Delivery Authority established by the Minns Government will turbocharge the development of Sydney’s newest suburb.

“The Authority is working at a record pace to deliver an international design competition, planning pathways and a financial model so that this development benefits Sydney with well-designed homes in a central location, close to public transport, jobs, entertainment and essential services.

“If we want Sydney to stay liveable and affordable, we need to be bold about using underutilised government-owned land to deliver homes for the future while making sure essential working harbour functions can be accommodated.”

Bays West Delivery Authority established to "turbocharge" Sydney’s newest suburb

Around 400 additional homes could be built at Southwark Grounds on Port Road, lifting total site capacity from 1300 to around 1700 dwellings.

A recently approved code amendment would allow apartment towers of up to 14 storeys in some areas of Renewal SA’s redevelopment of the former West End Brewery.

Renewal SA Acting Chief Executive Shane Wingard said he welcomed the code amendment, with the increase in heights and homes making a positive impact on the supply of high-quality, well-connected housing close to the city.

“By going higher across some parts of Southwark Grounds, we are adding a substantial number of very well-located homes with little impact on project delivery time or planned open space,” Mr Wingard said.

Since the project officially launched in 2025, Mr Wingard said more than 12,000 enquiries had been received about living at Southwark Grounds.

“The very strong early interest we’ve seen since homes were first released in the precinct reinforces our plans to create more housing opportunities,” he said.

The Southwark Grounds code amendment was launched in December last year, with community engagement undertaken over five weeks from January.

It proposed increasing maximum building heights from eight to 14 storeys on the eastern section of Southwark Grounds, and to 12 storeys across the remainder of the site, with minimum building heights ranging from two to four storeys.

The code amendment was implemented through an Early Commencement policy in late January, allowing developers to quickly explore the viability of increased height and housing yield while other planning processes continue.

One of the first developers delivering apartment sites have already finalised redesigns to increase the number of apartments following the code amendment.

Samaras’ development adjacent to the future Colonel Light Park is now planning to deliver 125 apartments across 11 storeys, significantly greater than original plans of around 50 apartments across four storeys.

The developer is also exploring the potential for additional affordable housing outcomes.

Most of the apartments at Southwark Grounds will be delivered within a master-planned precinct on a large parcel of land on the eastern portion of the site, covering around two-thirds of its 8.4 hectares.

Wingard said detailed precinct planning over the coming months may identify further opportunities to increase yield further that could see total apartment numbers at Southwark Grounds, exceed this number.

Affordable homes at Southwark Grounds will also see a net increase, with Renewal SA maintaining its commitment to a minimum of 20 per cent affordable housing across the development.

&nbsp;

&nbsp;

Civil works have begun across the site, with construction under way on the first new roads surrounding a townhouse precinct in the south‑west corner of Southwark Grounds. This includes Renewal SA’s 17 Founder’s Row homes, which are on track for completion by Christmas.

“We expect to have people living at Southwark Grounds by the end of the year, so delivering roads and public spaces for those residents is among our highest priorities.”

Construction of 40 townhouses off Anderson Street, known as West Village and being delivered by Contour, is forecast to begin in mid‑2026. Kolabb’s Anderson Lane development will follow shortly after, delivering a further 26 townhouses.

Southwark Grounds is a state government‑led urban renewal project now set to deliver around 1,700 homes over the next decade.

Homes will be supported by a supermarket, a range of retail and hospitality offerings anchored by a revitalised Walkerville Brew Tower, a childcare centre, car parking and well‑connected public spaces.

400 new homes planned for Adelaide's former West End Brewery site

Brisbane developer&nbsp;<a href="https://www.apartments.com.au/developers/cavcorp">Cavcorp</a> has lodged plans for a new mixed-use residential development at <a href="https://www.apartments.com.au/new-apartments/55-wyandra-street-teneriffe-qld-4005">55 Wyandra Street</a>, Teneriffe, anchored by an 85-metre public laneway designed to reconnect the suburb’s riverfront with the Gasworks precinct.

The buildings, known as Teneriffe House and Teneriffe Lane, would replace the existing Queensland Cotton head office site with a 15-storey residential tower transitioning to eight storeys toward Helen Street. The project has been designed by Plazibat Architects and lodged as a code assessable development application for 93 apartments across a 3,401 sqm mixed-use site within the Newstead and Teneriffe Waterfront neighbourhood plan.

Central to the scheme is the transformation of an existing service easement into a publicly accessible cross-block connection linking Wyandra and Helen Streets. Cavcorp says the new laneway will act as both a pedestrian shortcut and a landscaped civic space between the Teneriffe Riverwalk, ferry terminal, and Gasworks precinct.

<img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="26e7f058-b065-4de8-b13d-a2b8cb64dfcc" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/bldg.png?VersionId=sELS0ZKYi361oYipUa1BIKfe_.DLZoFV" />

“The revised proposal delivers a legacy public-realm cross-block link, permanently secured for community use, transforming an existing private easement into a safe, high-quality pedestrian connection between the Teneriffe heritage riverwalk and the Gasworks–Long Island precinct,” the planning report states.

The laneway will sit beneath a large subtropical loggia integrated into the podium levels of the development. The design incorporates deep landscaping, water gardens, lobby spaces, business lounges, and ground-floor apartments to create what Cavcorp describes as a climate-responsive “urban verandah.”

The tower itself has been designed as a slender form with recessed floorplates and curved translucent corners inspired by contemporary Japanese architecture. The building height aligns with the Commercial Road precinct controls, which permit towers up to 15 storeys within proximity to Longland Street.

<img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="a8a17d40-43b6-4718-b3fd-67676fcbb485" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/pers%202_1.png?VersionId=i3VwDtp5AmL_8InW7w4qRbDFEpb744Jt" />

The project will comprise a mix of larger-format apartments aimed at owner-occupiers, downsizers, and families. The proposed apartment mix includes 11 loggia apartments across the lower levels, 50 four-bedroom Sky-Terrace apartments from levels three to seven, and 32 Sky-Pool Homes occupying the upper tower levels. The Sky-Pool Homes will feature private thermal plunge pools integrated into oversized balconies.

According to the application, the apartments are intended to reinterpret the scale and character of Teneriffe’s woolstore conversions and Queensland homes within a vertical residential format.

“The sky-pool homes build on Cavcorp’s previous projects and introduce a distinct apartment typology to Teneriffe, informed by both local and international precedent and responding to an identified market demand for enhanced safety, space and amenity,” the planning submission notes.

A major focus of the proposal is its five-level wellness and lifestyle offering, extending from the basement through to the rooftop.

Amenities proposed include a rooftop Swim &amp; Racquet Club with a 25-metre Olympic lap pool and tennis court, coworking spaces and libraries, golf simulators, wine storage, concierge facilities, business lounges, pet wash areas, and rooftop longevity-focused wellness spaces with spas, outdoor fitness zones, and landscaped terraces.

<img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="944b352c-49b9-4247-a4c6-5967b4b69fda" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/amenity.png?VersionId=Ed_qKjAtMwFT.5gfl3jiA9QwdWxSMsaX" />

All parking will be concealed within basement levels accessed from Wyandra and Helen Streets. Cavcorp says the deep-basement engineering approach allows the entire ground plane to prioritise landscaping, pedestrian movement, and active frontage rather than vehicle infrastructure.

The development continues Cavcorp’s concentration in Newstead and Teneriffe, where the Brisbane developer has delivered a number of apartment projects including Lucent, Le Bain, and Luminare, as well as the Long Island Wellness Precinct nearby. Several of those projects have received national design and architecture awards, including recognition under Brisbane’s “Buildings that Breathe” program.

Cavcorp unveils wellness-focused Teneriffe House and Teneriffe Lane apartment buildings

Focus Group Investments has lodged plans for a new apartment development at <a href="https://www.apartments.com.au/new-apartments/64-70-hanover-street-fitzroy-vic-3065">64–70 Hanover Street</a> in Fitzroy, seeking to utilise the Victorian Government’s recently introduced Great Design Fast Track pathway to accelerate approvals for the project.

The proposal is among the latest developments to emerge through the state-led initiative, which was established to fast-track well-designed residential projects in activity centres and transport-connected inner-city locations. The pathway allows qualifying developments that meet elevated design and housing benchmarks to bypass traditional council planning timeframes and instead be assessed directly by the Department of Transport and Planning.

Designed by SJB, the development will comprise a mix of apartments above activated lower levels, with a strong focus on architectural articulation, landscaping, and communal amenity. The design response seeks to balance the industrial character of Richmond’s former warehouse precincts with a more contemporary residential form.

<img alt="First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Richmond apartments" data-entity-type="file" data-entity-uuid="abea51cc-d85b-479e-9aef-a589f3b37ca7" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/ground.png?VersionId=e1Kf8EyPWwyiVumtqQ4rM5S4GpOR3CCz" />

Proposed are 63 new dwellings, a wide ranging mix of studio, one-, two-, and three-bedroom apartments, and townhouses and duplexes. They will be spread across a part-three, part-eight storey building.

The Planning and Urban Context Report by Tract says the development is of an "exemplary architectural standard" and has been carefully crafted by SJB Architects.

"Dwellings&nbsp;will benefit from excellent access to natural light, cross-ventilation opportunities and extensive communal space," the report noted.

The architectural material highlights the project’s integration of landscaped elements and communal spaces throughout the building. The proposal also incorporates sustainability initiatives aligned with the Victorian Government’s push for higher-performing apartment developments under the fast-track program.

The Great Design Fast Track was unveiled by the Victorian Government in 2024 as part of a broader housing supply strategy aimed at accelerating the delivery of new homes. Projects assessed through the pathway must demonstrate high-quality architecture, sustainability outcomes, and housing diversity while being located close to public transport and existing infrastructure.

<img alt="First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Richmond apartments" data-entity-type="file" data-entity-uuid="afdbe834-8dc4-4a77-a943-ba07bc927348" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/site_11.png?VersionId=0J657j.TaChAZfp93wqJYBTqSsnREJx2" />

Focus Group, founder and led by Paul De Lutiis, is increasingly active across Melbourne’s inner suburbs, targeting well-connected urban renewal locations suited to medium and higher-density residential development. The Fitzroy proposal continues that strategy, leveraging the area’s strong transport links, established retail amenity, and proximity to the CBD.

Fitzroy has been one of the most popular spots for developers and buyers in recent years. The likes of PACE Development Group, SMA Projects, Crema Group and Chapter Group, currently selling projects in the suburb.

First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Fitzroy apartments

Smsfs

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ASIC's Park Trent trial is set to be heard over the course of four days commencing 7 April 2015.
ASIC commenced its proceedings in the Supreme Court of New South Wales seeking orders to prevent the property investment promoter from carrying on an unlicensed financial services business.
Park Trent’s business promotes the use of self-managed superannuation funds (SMSFs) to purchase investment property.
ASIC alleges in the contested matter that that Park Trent was unlawfully carrying on a financial services business without an Australian financial services (AFS) licence.
ASIC understands that Park Trent has advised at least 500 members of the public to establish and switch funds into an SMSF which are then used to purchase investment properties that are owned or promoted by Park Trent companies.
It has not gone all to plan for ASIC in the court. 
At the directions hearing on 15 December 2014, ASIC's application sought, amongst other things, orders restraining Park Trent from carrying on a financial services business until the hearing of ASIC's application for final relief.
But ASIC's interlocutory application was not determined with orders made expediting the trial of the proceedings.
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jchancellor-FAypfDUnLy

Park Trent trial set for April NSW Supreme Court hearing

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An ageing population, distrust in the super system and a dependency on foreign debt will put significant strain on Australia’s retirement income system over the next 40 years and will potentially leave Aussies without enough super to retire on, according to a panel of industry experts that included David Murray, the head of the <a href="https://www.smartcompany.com.au/finance/42840-what-the-murray-financial-industry-report-means-for-your-business" target="_blank">Financial System Inquiry</a> (FSI).
Murray told a breakfast in Melbourne the superannuation system needed clearer objectives in the coming years.
"We need to make sure the objective of the system is clear. If it’s not, and we don’t make some improvement, we will increasingly have to ask the question: Would we have been better off without this system?” said Murray.
“It’s not clear that we’ve made an overwhelming strong start in the superannuation system. There are a lot of people that start at 3% that won’t have adequate outcomes in retirement.”
The panel, which was hosted by the Self Managed Super Fund Association, also included former Keating government advisor Don Russell, economist and former Reserve Bank board member Warwick McKibbin, and SMSF Association chief Andrea Slattery.
Ageing population
McKibbin, an economic modeller, argued while <a href="https://www.smartcompany.com.au/finance/superannuation/31367-smsf-experts-say-ageing-population-a-concern-for-industry" target="_blank">Australia’s ageing population</a> was not facing as much pressure as some countries, such as Japan and certain areas in Europe, we are still at the mercy of an increasing rate of old age dependency.
“Demographics is always destiny,” said McKibbin, who pointed to research showing while world economies would continue to grow, work participation rates will conversely decline.   
“Just from demographics alone, we can see there will be a fundamental slowdown in the world economy,” he says.
“The people who are working can’t support the number of old age people.”
Superannuant apathy
Russell, who was one of the architects of compulsory superannuation system, argued the public is becoming increasingly apathetic about super, and the superannuation industry was guilty of not having done enough to convince people to lock away their money for 40 years.
“Unless we can continue to convince people it’s a good deal to have their money locked, people will start saying, ‘I’ll have my money now’,” said Russell.
He said the failure of the industry to speak with one voice had discredited it in the eyes of many people and had strengthened criticism of compulsory super.
Foreign reliance
Murray, the former chief of the Commonwealth Bank, used the analogy of Australia as a bank customer to illustrate our reliance on foreign debt, saying the country could be classed as “a prolific borrower”.
He said while the country is generally “a style of borrower that does prefer to pay their debts”, it was now at risk of <a href="https://www.smartcompany.com.au/growth/economy/42017-australia-s-aaa-credit-rating-at-risk-we-ask-three-economists-does-it-matter">the consequences of irresponsible budgetary management</a>.
“Well, what [does Australia] do when things are crook? Generally they have managed the budget fairly responsibly. Well we’ve reached a point where we don’t anymore,” said Murray.
Russell agreed Australia was too reliant upon other economies and was at risk of “being run over” if it slowed down reform to the super system.
“The US is of such a size, if it sits in the middle of the road, everyone goes round it. If Australia stops in the middle of the road, it gets run over. It’s not an option for us to be stopping,” he said.
SMSF sector
Meanwhile, the two-day conference also canvassed the condition of the self-managed super fund sector, with Slattery saying a growing number of people were “taking responsibility” for their super in the face of the challenges on the system.
In her keynote address, Slattery said recent reports, including the FSI, had given the SMSF sector “a clean bill of health”.
“We all know the figures. Of $1.85 trillion invested in superannuation at 30 June 2014, $560 billion is in SMSFs,” said Slattery.
“That’s 31% of all superannuation funds, with SMSFs now representing the majority of those that are self-sufficient in their retirement with 93% of members drawing income streams in the retirement phase.”
Slattery also pointed to “sobering” statistics that show approximately 84% of Australians are currently retiring on $21,000 or less a year through APRA-regulated funds.
SMSF investors making growth a priority
While concerns remain clear for the superannuation system as a whole, the conference also drew attention to research showing “green shoots” for SMSF investments.
The SMSF Investor Product Needs Report released on Tuesday shows trustees are now swinging away from cautious investments and are beginning to make growth a priority.
“For the past few years, the pendulum has been on the fear side; it was moving back towards optimism, but a lot of caution has emerged in 2014,” said the report.
The survey of 2681 investors with an SMSF, which examines investment trends in the six-year period from 2009 to 2014, says SMSF investors are in a period of “cautious optimism”, and while maximizing income remains important, trustees are focusing more on growth.
Slattery said in a statement the study “put to bed” the myths that SMSF investors don’t like making decisions, are apathetic, and basically sit on large cash reserves.
“As the report says, SMSF investors tend to lead the general investor population in investing behaviour and, as such, it’s critical to watch what they are doing,” she said.
This article first appeared on <a href="https://www.smartcompany.com.au/" target="_blank">SmartCompany</a>.
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krobb-aCrRNnPq6D

The future of the super system and how your SMSF will fare

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A recent Federal Court case underlines the potentially destructive consequences when the assets of a family’s self-managed super fund are used in an attempt to save a family’s struggling small business.
The trustee of the super fund in this case made six back-to-back loans totalling $190,000 to his brother-in-law who immediately transferred the money to the trustee’s Sunshine Coast convenience store.
A high price is being paid by the SMSF’s two members – Anthony Shaune Lyons and his wife, Julianne Marie – for the decision to use their super money as working capital for their financially-troubled business:
<ul>
<li>Their savings in the SMSF have been lost. None of the superannuation injected into their family business has been repaid and is, according to the court, irrecoverable. (The $190,000 in loans represented almost all of the super fund’s $193,000 in assets.) </li>
</ul>
<ul>
<li>The court has personally fined the trustee Anthony Shaune Lyons $32,500 plus $5000 towards costs for contravening a range of the most fundamental laws including the bar on providing financial assistance to members or their relatives.</li>
</ul>
<ul>
<li>By using their SMSF assets to prop up their failing business, the couple lost the protection of superannuation as a means to quarantine their super savings from the fate of their convenience store. Superannuation is widely regarded as an effective means for small business operators to gain asset-protection subject to certain conditions.</li>
</ul>
The couple is now bankrupt because of personal debts incurred in running their business. Their plight is setout in stark detail in the court’s judgment, <a href="https://www.judgments.fedcourt.gov.au/judgments/Judgments/fca/single/2014/2014fca1353">Deputy Commissioner of Taxation (Superannuation) v Anthony Shaune Lyons</a>.
Peter Crump, superannuation strategist for ipac South Australia, is emphatically against business owners using their super savings to try to save their financially-troubled businesses.
Crump, who is chairman of the SMSF Professionals’ Association of Australia, says owners of small businesses that are experiencing difficulties may tend to look at their business’s chances of recovering with “very rose-coloured” glasses.
“They may say to themselves, ‘I only need to put in a little more money to see the business through’. It is in a similar vein to gambling,” Crump believes.
The sad experience of the business couple in this court case highlights why SME business owners should:
<ol>
<li>
Not overlook the excellent asset-protection qualities of superannuation  Assets held in a super fund are generally inaccessible to trustees in bankruptcy – provided contributions were not made with the main purpose of defeating creditors. “By moving savings outside super,” says Crump, “you are exposing those savings. Keeping super and business assets separate is one of the key advantages of superannuation.” 
</li>
<li>
Know when to quit a failing business and understand the need for quality professional advice Rather than chasing good money after bad in a failing business, Crump says business owners should listen to expert and independent professional advice about when to quit. “You should have advisers with the courage and conviction to tell you when to quit a business,” he stresses. 
</li>
<li>
Never overlook thefundamental laws of super  The trustee in this court case contravened the most basic laws of super. The trustee breached the sole-purpose test (a super fund must be maintained to provide retirement benefits); the ban on providing financial assistance or loans to fund members and their relatives; the in-house asset rule (with a few exceptions, super funds are prohibited from making loans or having investments with related parties and entities that exceed 5% of its total asset value); and the requirement that transactions must be conducted on an arm’s length basis. 
</li>
<li>
Recognise the “certainty of detection” for illegal payments from a super fund  Crump says a superannuation auditor conducting the compulsory annual audit of a super fund will inevitably detect and ask for an explanation about such transactions as loans to members or their relatives.</li>
</ol>
This article first appeared on <a href="https://www.smartcompany.com.au/" target="_blank">SmartCompany</a>. 
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SMSF money lost in failed attempt to save business: Four ways to protect your SMSF

<html><body>
Last December, the Financial Services Inquiry’s final report <a href="https://fsi.gov.au/publications/final-report/chapter-1/direct-borrowing/" target="_blank">recommended a ban on borrowing to inves</a>t in property through self-managed superannuation.<a href="https://fsi.gov.au/publications/final-report/chapter-1/direct-borrowing/"> </a>
Among its 44 recommendations the FSI report, advised government that to minimise risk to the financial system it should stop self-managed superannuation funds (SMSFs) using limited recourse borrowing arrangements (LBRAs) to acquire property and other assets.
Superannuation rules were changed in 2007 to allow SMSFs to borrow using LBRAs. The value of the loans rose from $497 million in June 2009 to $8.7 billion in June 2014.
“Further growth in superannuation funds’ direct borrowing would, over time, increase risk in the financial system,” the FSI report noted.
The inquiry pointed out that while a lender only had recourse to the asset over which the LBRA was held, trustees would likely sell other fund assets to repay the debt if the asset’s value fell.
“As a result, LRBAs are generally unlikely to be effective in limiting losses on one asset from flowing through to other assets, either inside or outside the fund,” it warned.
It also raised concerns that borrowing reduced diversification and concentrated risk in superannuation funds, and allowed SMSF members to circumvent contribution caps, which restrict the amount members can add to their funds.
Self-Managed Superannuation Professionals’ Association of Australia director of technical and professional standards Graeme Colley said there was “scant evidence of abuse of LBRAs to date”.
“But [SPAA] can appreciate the FSI’s position if leverage in superannuation did grow to a level where it could be a threat to people’s retirement savings,” he added.
Separate from the review, regulators have been cracking down on unlicensed property spruikers who have been luring investors into setting up SMSFs to buy residential property, often using borrowed money.
In November, the Australian Securities and Investments Commission commenced proceedings in the Supreme Court of New South Wales against property investment promoter, Park Trent Properties Group. <a href="/guides/asic-commences-proceedings-against-property-promoter-park-trent-properties">ASIC alleges</a> Park Trent advised at least 500 members of the public to establish an SMSF and then use the fund to buy investment properties that were owned or promoted by Park Trent companies.
If the FSI’s proposed ban on borrowing goes ahead, funds with existing LBRAs would not be affected, although those disposing of assets bought with an LBRA would have to extinguish the associated debt at the same time. No date was set for the proposed regulations to begin. 
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Growth in SMSF borrowing will "increase risk in the financial system"

<html><body>
GUEST OBSERVATION
Self-managed super funds are, and have been, flavour of the month for some time now.
The opportunities SMSFs provide for people to control their retirement incomes can be attractive. Of course, running such a fund has its own costs and the person in control (the trustee) has the onus to ensure the fund performs at an acceptable level.
But there are many rules and regulations that govern SMSFs and they can be a trap for the unwary. A recent Federal Court decision shows what can go wrong.
In the case, the Federal Court imposed civil penalties of $13,000 (plus $5000 in costs) for each of three directors of the corporate trustee of an SMSF in relation to breaches of the superannuation laws involving short-term loans to a related business.
The first respondent, Early Sunshine, was the corporate trustee of the SMSF known as the George MacDonald &amp; Sons Superannuation Scheme No 2. The other three respondents are the directors of Early Sunshine Pty Ltd.
Over a four-year period from 2007 to 2011, the three directors caused the SMSF to make 71 loans to the freight trucking business George MacDonald &amp; Sons of which the respondents were employees, directors and shareholders. The freight trucking business lost its principal customer in 2001 and began to experience significant financial stress in 2007-08 amid the global financial crisis.
Typically, the loans were outstanding for only a few weeks at a time and used to cover the working capital of the business (primarily to pay salaries and wages). A total of $553,568 in loans was made by the SMSF to George MacDonald &amp; Sons.
Each of the 71 separate loans was less than $20,000 (with an average of $7,768). The loans were unsecured and did not bear interest but each loan was ultimately repaid in full. The SMSF also made a $2000 loan to a company controlled by one of the respondents. This loan was unsecured but was repaid on demand with 8.5% interest.
In August 2009, the SMSF's auditor lodged the first of several auditor contravention reports for the relevant years noting breaches of the superannuation law in relation to the loans. The reports recorded breaches of the sole purpose test, the in-house asset rules and the arm's length dealing requirement.
In October 2011, the Tax Office issued the SMSF with a notice of non-compliance. As a result, the SMSF lost its concessional tax treatment and was issued with an assessment of $63,254 for the 2008 year (which it paid in January 2012). In August 2011, the trustee resolved to wind up the SMSF and roll over the members' benefits to an industry fund.
The applicant, as Deputy Commissioner of Taxation (Superannuation), applied to the Federal Court to impose civil penalties. A statement of agreed facts indicated there was no dispute among the parties as to any aspect of the case.
While a maximum civil penalty of $220,000 could apply for each contravention under the relevant superannuation laws, the court imposed a penalty of $13,000 for each director of the trustee of the SMSF, together with $5000 (each) for the Commissioner's costs. The court agreed that the contraventions were "serious" from a regulatory perspective as they involved deliberate, repetitive breaches over a four-year period and put at risk the assets of the fund.
However, the court said it must be remembered that, in the end, the fund did not suffer any loss of capital. The foregone interest income was not significant. In addition, all of the respondents admitted all of the contraventions which were ultimately pressed by the Tax Commissioner and co-operated fully with the Commissioner both at the investigation stage and in the proceeding. Also, the fund has now been wound up and the members’ balances have now been transferred to a public fund which the court noted should ensure they are satisfactorily protected.
The court was also cognizant of the fact that each of the individual respondents had taken full responsibility for their involvement in the contraventions and had expressed remorse and contrition for their conduct.
In the case of multiple contraventions, the court said the pecuniary penalty should reflect the totality of the conduct. Although Early Sunshine was the primary contravener of the superannuation law, the court accepted there was no point imposing a civil penalty on the corporate trustee (which was now dormant). Instead, the court held that the three directors were each liable for a pecuniary penalty of $13,000.
The court initially considered that the penalties proposed by the parties were insufficient. However, after taking into account all of the circumstances, the court ultimately agreed that a penalty of $13,000 (plus $5,000 in costs) for each director was appropriate.
The court reached this conclusion after having regard to the relevant factors and applying the general principles for imposing civil penalties under the superannuation law, as set out in the established cases.
The case is a salutary reminder of the penalties that can apply when SMSFs contravene the laws that govern them. The penalties in this case were significantly lower than the statutory maximum and SMSF trustees can take a lesson from the reasons why the court considered that appropriate.
Terry Hayes is the editor-in-chief of tax news reporting at <a href="https://www.thomsonreuters.com.au/">Thomson Reuters</a>, a leading Australian provider of tax, accounting and legal information solutions.
This article first appeared on <a href="https://www.smartcompany.com.au/" target="_blank">SmartCompany</a>.
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Making loans from SMSFs – court imposes $40,000 in penalties: Terry Hayes

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The number of self-managed superannuation funds in breach of borrowing requirements increased over the past year, according to research by the Partners Wealth Group.
<a href="https://www.partnerswealthgroup.com.au/wp-content/uploads/2015/01/2014-Partners-Wealth-Group-Audit-Survey.pdf" target="_blank">The research</a> is based on over 600 SMSFs across Australia audited in 2014 and found 23% of funds with a relevant breach were in breach as a result of borrowing requirements.
This is a significant increase from 12% of funds the year before.
However, overall the number of SMSFs requiring a contravention report to be lodged with the ATO has fallen over the past year in line with the past seven years.
<table style="width: 460px;" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="top" width="77">
Year
</td>
<td valign="top" width="77">
2014
</td>
<td valign="top" width="77">
2013
</td>
<td valign="top" width="77">
2012
</td>
<td valign="top" width="77">
2011
</td>
<td valign="top" width="77">
2010
</td>
<td valign="top" width="77">
2009
</td>
<td valign="top" width="77">
2008
</td>
</tr>
<tr>
<td valign="top" width="77">
% funds in breach overall
</td>
<td valign="top" width="77">
5
</td>
<td valign="top" width="77">
5.3
</td>
<td valign="top" width="77">
5.3
</td>
<td valign="top" width="77">
5.5
</td>
<td valign="top" width="77">
3.4
</td>
<td valign="top" width="77">
7.2
</td>
<td valign="top" width="77">
11.3
</td>
</tr>
</tbody></table>
 
<table style="width: 460px;" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="top" width="205">
Key breaches 
</td>
<td valign="top" width="205">
% of funds with relevant breaches in 2014
</td>
<td valign="top" width="205">
% of funds with relevant breaches in 2013
</td>
</tr>
<tr>
<td valign="top" width="205">
SMSF borrowings
</td>
<td valign="top" width="205">
23%     
</td>
<td valign="top" width="205">
12%
</td>
</tr>
<tr>
<td valign="top" width="205">
Loan to members
</td>
<td valign="top" width="205">
23%
</td>
<td valign="top" width="205">
38%
</td>
</tr>
<tr>
<td valign="top" width="205">
In-house assets
</td>
<td valign="top" width="205">
20%
</td>
<td valign="top" width="205">
31%
</td>
</tr>
</tbody></table>
Partners Wealth Group director of SMSF consulting and auditing, Martin Murden, attributes the increase in breaches to a misunderstanding of the rules.
SMSFs are entitled to borrow under limited circumstances in order to pay benefits, settle on investments and acquire investments via a limited recourse borrowing arrangement (LRBA).
“Because borrowing via a LRBA is relatively new and has been subjected to several rule changes since inception, my suspicion is that there has been confusion, resulting in some SMSF trustees thinking it was permissible to use their fund to borrow to overcome a short-term liquidity problem – much like a small business seeking a temporary extension to a bank overdraft in difficult circumstances,” Murden said in a statement.
Two other key areas of transgression highlighted by the Partners’ research came from funds taking personal loans for members and funds breaching the in-house assets rule.
Murden said, periodically, loans occur by mistake. For example, using the wrong cheque book (that of the SMSF) to pay a personal expense. On other occasions members are simply in need of money and there is no one to stop them from borrowing from the fund.
“However, it is important to remember that while the loan may appear small in dollar terms and when compared to overall fund assets, personal loans are simply not allowed under super legislation. They’re an absolute no-no and size is no excuse,” Murden said. 
Graeme Colley, director of technical and professional standards at the SMSF Professionals' Association of Australia (SPAA), said the spike probably means auditors are being more fastidious in analyzing the operation of SMSFs.
“Hopefully with requirements for the registration of auditors, the auditors that are left in the registration group are taking their jobs more seriously as they have greater obligations in reporting to ASIC,” he says.
“We may see an increase again simply because of the thoroughness of the audits that are conducted.”
Colley says the types of breaches identified by the Partners Wealth Group are not surprising.   
“The main issue is people taking money out of their funds, in-house assets which is next and then separation of assets,” he says.
“Mixing assets is really serious as it means SMSF trustees may be putting their hand into the operation of the fund.”
This article first appeared on <a href="https://www.smartcompany.com.au/" target="_blank">SmartCompany</a>.
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Spike in number of SMSFs in breach of borrowing requirement

<html><body>
GUEST OBSERVATION
All too often we get calls or emails from clients and some non-clients even, who are late with getting important information back to their accountant, whether it is tax returns, information for their auditor, or engaging with their wealth planner!  So, we thought we would find out what is the right information and when it is needed.
We are focussing on audits of SMSFs and trading entities. We have captured here the key areas of process, or events where you must advise your auditor.
SMSFs
<ul>
<li>Make sure all SMSF transactions go through the fund’s bank account. 
</li>
<li>Put an investment strategy in place.  If you do not have an investment strategy, then please talk to our wealth planning team who will be only too happy to assist you. 
</li>
<li>Tell your accountant when anything significant happens so they can produce a minute of the trustees meeting. e.g. buying or selling a significant asset. 
</li>
<li>“I transferred money into or out of the SMSF bank account in error” - Tell your accountant straight away and agree the best way to I fix this. 
</li>
<li>One of the members/trustees is seriously ill – Tell your accountant. 
</li>
<li>A trustee is leaving Australia ‘permanently’ or for more than six months – Tell your accountant. 
</li>
<li>SMSF trustees should work with their accountant to ensure that they don’t do anything to prejudice the tax advantaged 15% tax or tax free pension income. 
</li>
<li>Maximum or minimum pension amounts must be drawn every year 
</li>
<li>If you receive an auditors management letter, you should act on any matters raised, before they become reportable contraventions 
</li>
<li>If you don't have much money invested in your SMSF - check with your accountant to make sure it is still viable to maintain.  It could be a good option to transfer your super monies into a public offer super fund. 
</li>
<li>Have you considered having life and income protection insurance inside the super fund? 
</li>
<li>SMSFs are not allowed to buy residential property from a member or related party. 
</li>
<li>In a SMSF it can't rent or provide a residential property to a family member or yourself. 
</li>
<li>If part of your investment strategy is to collect art, then it can’t be displayed or leased in a SMSF member’s home or property (sole purpose test).</li>
</ul>
Other Audit Clients:
<table style="width: 460px;" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="top" width="26">#</td>
<td valign="top" width="197">Issue Description</td>
<td valign="top" width="197">Reason</td>
<td valign="top" width="197">Preferred course of action</td>
</tr>
<tr>
<td valign="top" width="26">1</td>
<td valign="top" width="197">Not keeping full records in a business-like manner.</td>
<td valign="top" width="197">It makes performing an audit difficult as sufficient appropriate audit evidence cannot be accumulated by the auditor to support an audit opinion and allow for a ‘clean’ audit report to be issued.</td>
<td valign="top" width="197">Full and proper record keeping needs to be employed – seek the advice of your accountant early.</td>
</tr>
<tr>
<td valign="top" width="26">2</td>
<td valign="top" width="197">AGM timing – ‘Not for Profit’ organisations sometimes schedule their AGM far too close to the end of their financial year.</td>
<td valign="top" width="197">Does not leave enough time for the financials to be compiled leaving enough time for an appropriate audit to be conducted.</td>
<td valign="top" width="197">Liaise with your accountant and auditor on achievable time frames and preferred AGM dates.</td>
</tr>
<tr>
<td valign="top" width="26">3</td>
<td valign="top" width="197">If your business has bank lending covenants that need to be maintained, an auditor may need to check these and report accordingly.The terms of your lending covenants might include not declaring a dividend large enough to create negative current assets. Or your interest coverage ratio needs to stay above a certain level.You should be aware of any loan or overdraft conditions imposed by the bank and work with your accountant to ensure they’re not breached.</td>
<td valign="top" width="197">If breached, at any time during the year, the bank may have the right to call in the loan. This could be inconvenient for you and require the loan to be quickly refinanced – if possible.</td>
<td valign="top" width="197">Be aware of lending conditions, maintain monthly or quarterly financials promptly and have your accountant regularly checking that covenants are met.</td>
</tr>
<tr>
<td valign="top" width="26">4</td>
<td valign="top" width="197">Directors not being aware of other factors that would require an annual audit to be conducted e.g. ASIC requirements.</td>
<td valign="top" width="197">If a shareholder (holding 5% or more of the shares) requests an audit; if the company becomes a Large Proprietary company, if the company has  any two of the following -  more than 50 employees; Assets of more than $12.5M; and turnover of greater than$25m.</td>
<td valign="top" width="197">Keep your accountant informed of changes with your company so they can advise if ASIC regulations require an annual audit.</td>
</tr>
</tbody></table>
Robert Edwards is a partner at <a href="https://www.chan-naylor.com.au/" target="_blank">Chan &amp; Naylor</a> Audit Services.
Disclaimer: This article contains general information. Before you make any financial or investment decision you should seek professional advice to take into account your individual objectives, financial situation and individual needs.
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What you need to tell your accountant about your SMSF

<html><body>
GUEST OBSERVATION
Former Prime Minister Paul Keating recently suggested that self-managed superannuation funds (SMSF) should be restricted from investing in residential property
Keating told the Financial Review: “If I was treasurer today, I would be looking very hard at the whole entitlement or availability of debt to SMSFs. They have gearing available to them and, of course, many of them are taking the option of buying residential property.”
According to the latest Australian Taxation Office (ATO) SMSF statistics, real residential property represents 3.5% of the value of all assets held in SMSFs.  This level of investment has been consistent since 2009 with the bulk of properties worth between $200,000 and $1 million.  SMSF investment in commercial property is around 12%.
However, what has changed is the number of investors with an average of 1,200 new investors using their SMSFs to purchase residential property each year.  The explosion in limited recourse borrowing arrangements which have increased 1,758% between June 2009 and June 2014.
For many SMSFs however, there are some very big risks if the borrowing arrangements and property purchases are not put in place correctly.  If your SMSF breaches its compliance obligations, it is at risk of being deemed non-compliant and losing its concessional tax status and the trustees also risk being fined personally under the ATO’s new penalty powers that came into effect on 1 July 2014.
Here are the top SMSF property issues:
<ol>
<li>
Should your SMSF buy a property? Liquidity, diversification and cashflow.  The Superannuation Industry (Supervision) Act (SIS Act) requires trustees to take heed of these elements when making any investment.  When an SMSF invests in real property, there is a risk that the trustees are putting all of the fund’s ‘investment eggs’ in one basket and the rate of return will not be enough to meet the fund’s obligations. Funds in, or entering, pension phase need to meet the minimum pension drawdown requirements.  The question is, will the rental yield meet the ongoing expenses of the fund including pension payments?  Funds are required to increase the minimum pension drawdown over time: 4% at age 64, and 6% at age 75.  That's an increase of 50% in draw down obligations.  Will rent increase by 50% to keep pace? But what if a member wants a lump sum and not a pension, where will the immediate cash come from? What about when a member dies?  How will the benefits be paid out from the fund? You can't sell one room of an investment property. 
</li>
<li>
Can my SMSF purchase my investment property? A common question that often comes up is, can my SMSF buy a residential rental property, holiday home, or house from me or someone related to me?  The answer is no, not unless the property is business real property (a property used wholly and exclusively for business).  And, in most cases, residential property will not meet the requirements to be business real property.  It’s important to bear in mind that the penalty for breaching the related party investment rules is up to 12 months in jail. 
</li>
<li>
Improving a property If your SMSF has borrowed money to purchase a property, it cannot use any part of those borrowings to improve that property.  Also, a SMSF cannot borrow money to repair an asset it already owns outright. However, a SMSF can use its own money to improve or repair a property acquired with borrowings, as long as the improvements do not result in the asset becoming a different asset.  For example, the trustees could not change a residential property into a childcare centre.  Or, turn a vacant block of land into an investment property. Take the example of a SMSF that borrows to buy a residential house on a large block of land ripe for development.  The fund cannot subdivide the land and build another house because the borrowing rules prohibit a change in the character of an asset bought with borrowed money until the borrowings are extinguished. 
</li>
<li>
Getting the essentials wrong The common problem areas for SMSF trustees are often simple things in the rush of the moment or simply poor structuring. The most obvious example is when a property is purchased by an SMSF but the contract is in the name of the individuals.  Sometimes people just get carried away and make the purchase without thinking through the details.  Or, where there is a related entity involved like a unit trust but the unit trust was not established before the property was purchased or the incorrect name is inserted on the contract or registered with the titles office
</li>
</ol>
Shukri Barbara is principal adviser at Property Tax Specialists.
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The top four SMSF property investment issues

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Former chairman of BHP Billiton and chief executive of the National Australia Bank, Don Argus, is embroiled in a legal battle with the Australian Tax Office over his superannuation.
The ATO wants to charge tax on almost $1.2 million in income earned by the $15 million self-managed superannuation fund of <a href="https://www.smartcompany.com.au/leadership/profiles/21793-20110906-the-selling-of-reform">the elder statesman</a> and his wife, Patricia.
Argus, who is now chairman of the Bank of America Merrill Lynch Australia Advisory Board, claims the income should be tax free.
On 16 April 2014 the Argus’s objected to the ATO’s assessment of income tax issued to their SMSF for the year ended 30 June 2010.
On 29 September 2014 the ATO disallowed the objection and so the Argus’s have now filed an application for the decision to be varied in the Federal Court.
The Argus’s are seeking an almost $1.2 million reduction on the tax paid by them for the 2010 tax year claiming the assessment of $2.25 million in tax is “excessive” because it wrongly concluded the SMSF did not pay out the minimum amount required.
Graham Colley, director of technical and professional standards at the SMSF Professionals’ Association, said with a $15 million fund value the minimum amount of pension to be paid should be around $900,000. 
“[SMSF trustees] need to make sure you pay the minimum amount of your pension for the year,” he says.
“You can do it simply by making sure you have direct debits into your bank account.”
Colley advises SMSF trustees also need to make sure the valuation of the investments are made so the calculation of the amount has been correctly done. 
“Even if you have underpaid a small amount the commissioner will exercise his powers of administration providing you make up the shortfall as soon as it is discovered,” he says.
“Make sure you know when your pension starts, make sure you know when it stops and one of the standards to qualify as a pension is to make sure you pay the minimum amount.”
<a href="https://www.afr.com/p/national/don_argus_takes_on_taxman_over_super_JwuiiKK4asPzKTku9UdW9K" target="_blank">Fairfax</a> reports the dispute is scheduled for a court hearing in Melbourne on 2 Februrary.
SmartCompany contacted Argus but did not receive a response prior to publication.  The ATO declined to comment.
This article first appeared on <a href="https://www.smartcompany.com.au/" target="_blank">SmartCompany</a>.
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Former BHP chairman Don Argus takes on the Tax Office over his $15 million SMSF 

<html><body>
GUEST OBSERVATION
Last month, the government released it’s latest <a href="https://fsi.gov.au/files/2014/12/FSI_Final_Report_Consolidated20141210.pdf" target="_blank">Financial Systems Inquiry Report</a>. 
The Inquiry led by David Murray laid out a ‘blueprint’ for the financial system over the next decade. It has been 16 years since the last 1997 Wallis report which led to ASIC and APRA being setup, amongst other things. The previous Campbell report in 1981 led to the floating of the Australian dollar and the deregulation of the financial sector.
In short, this is an important report that is listened to and will have impacts on the way financial system moves forward.
One key recommendation in the report was to ban leveraging (borrowing) within superannuation and therefore the removal of limited recourse borrowing arrangements (LRBA). LRBAs have been growing at an astounding rate as property investors have been able to use all the tax benefits of self-managed super funds to buy investment properties in a low tax rate environment. Obviously with the love of property Australians have, this has been a great idea for some and not so great for others.
The reason Murray is worried about borrowing and for considering banning these arrangements is due to the leveraging of assets may destabilise the superannuation industry sometime in the future if property prices should fall. He is also concerned by the shear number going forward and does this make our superannuation industry property heavy.
The government may after the consulting period which finishes on 31 March 2015 decide to make an immediate change from any day going forward. If it believes it is a wise suggestion, they would remove the ability to borrow inside superannuation for property and make this change for future arrangements only and all current SMSFs can continue as normal.
So is this an opportunity you could miss?
It is important to be very mindful that this is not for everyone. Investing in any property has different associated risks and especially when using debt. One of the drivers for change, is down to there being greedy property spruikers that have been targeting lower balance disgruntled superannuation members with new properties for sale.
Spruikers have been using Australians love of property as bait and selling properties to unsuitable super members. This is the real risk for this strategy; purchasing poor property at top prices with no diversification in place or buffer if things should go wrong. I have seen this first hand. I have been offered and absolutely refused the opportunity to sell horrendous investment properties to my clients for huge commissions. This is a disaster waiting to happen and I have been actively against this type of behaviour for many years.
Putting this to one side;  For some purchasing a great, sound, highly sought after investment property in an SMSF can however be an absolute brilliant strategy to build wealth for retirement in a diversified way. The tax advantages of Superannuation means debt can be repaid faster with lower tax on contributions and rental income. It does however solely come down to it being an outstanding property – one characterised by limited supply and an ever increasing demand.
So should you buy a sound stable property in your SMSF?<a href="https://www.canopyprivate.com.au/" target="_blank"> </a>
It can give you a great low volatile asset and with the power of debt can increase your exposure to the investment market by three to four times what you are currently have in an investment portfolio. While this is not suitable for all, if you are currently contributing more than $15-20,000 per year, have over $300,000 in your family super funds and have at least five years till you retire; you may like to consider it before the opportunity may go in 2015.
However, If you are still under $200,000 and still growing your contributions, I would sit tight and wait a few years before even looking at it.
I am actively disagreeing with the removal of LRBAs as i believe it should be the right for investors to decide how their superannuation is invested. I do however want greater attention on property spruikers and developers who are selling these without any concern on the effect it has on the person buying.
Chris Bates is a director of financial advisory firm <a href="https://www.canopyprivate.com.au/" target="_blank">Canopy Private</a>.
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