array(1) { [0]=> &object(stdClass)#5696 (52) { ["id"]=> string(5) "16662" ["title"]=> string(120) "Is the market overheating; should ETFs take your fancy, and what’s happening to the low and middle income tax offset? " ["alias"]=> string(114) "is-the-market-overheating-should-etfs-take-your-fancy-and-what-s-happening-to-the-low-and-middle-income-tax-offset" ["introtext"]=> string(156) "

On this episode of The nestegg Podcast, host Maja Garaca Djurdjevic and three experts discuss the latest in equities, property investing and super.

" ["fulltext"]=> string(1063) "

Steve Waters, director of Right Property Group, chats about the latest in property, including the much-talked-about use of macro-prudential measures to cool the rapidly expanding market.

RMIT’s senior lecturer of finance, Dr Angel Zhong, talks about soaring ETFs, what they are and why young investors, in particular, are jumping onboard their latest surge. Dr Zhong also takes a closer look at BNPL platforms.

And lastly, tax and super guru Timothy Munro gives his thoughts on Prime Minister Scott Morrison’s choice to backtrack on any further SG changes and looks at the impending end of the low and middle income tax offset.

Have a question for our experts? Get in touch at [email protected] and you might get featured on the next episode.

" ["checked_out"]=> string(1) "0" ["checked_out_time"]=> string(19) "0000-00-00 00:00:00" ["catid"]=> string(3) "302" ["created"]=> string(19) "2021-04-20 05:52:58" ["created_by"]=> string(4) "2404" ["created_by_alias"]=> string(0) "" ["state"]=> string(1) "1" ["modified"]=> string(19) "2021-04-20 07:31:39" ["modified_by"]=> string(4) "2357" ["modified_by_name"]=> string(12) "Erika Sauler" ["publish_up"]=> string(19) "2021-04-20 07:06:30" ["publish_down"]=> string(19) "0000-00-00 00:00:00" ["images"]=> string(233) "{"image_intro":"images\/podcasts\/Angel_Zhong_Steve_Waters_Timothy_Munro.jpg","float_intro":"","image_intro_alt":"","image_intro_caption":"","image_fulltext":"","float_fulltext":"","image_fulltext_alt":"","image_fulltext_caption":""}" ["urls"]=> string(121) "{"urla":false,"urlatext":"","targeta":"","urlb":false,"urlbtext":"","targetb":"","urlc":false,"urlctext":"","targetc":""}" ["attribs"]=> string(855) "{"article_layout":"","show_title":"","link_titles":"","show_tags":"","show_intro":"","info_block_position":"","info_block_show_title":"","show_category":"","link_category":"","show_parent_category":"","link_parent_category":"","show_associations":"","show_author":"","link_author":"","show_create_date":"","show_modify_date":"","show_publish_date":"","show_item_navigation":"","show_icons":"","show_print_icon":"","show_email_icon":"","show_vote":"","show_hits":"","show_noauth":"","urls_position":"","alternative_readmore":"","article_page_title":"","video_url":"","channel_id":"UCLBR-2LtTtui_WiRuEfW3qA","send":"0","test":"0","schema_active":"0","schema_name":"","schema_description":"","schema_thumbnailUrl":"","schema_uploadDate":"","schema_duration":"","schema_contentUrl":"","schema_embedUrl":"","comments":"1","readingDiff":"3","canonical_link":""}" ["metadata"]=> string(68) "{"robots":"","author":"","rights":"","xreference":"","metatitle":""}" ["metakey"]=> string(82) "market, overheating, etfs, fancy, what’s, happening, middle, income, tax, offset" ["metadesc"]=> string(200) "On this episode of The nestegg Podcast, host Maja Garaca Djurdjevic and three experts discuss the latest in equities, property investing and super. Steve Waters, director of Right Property Group, " ["access"]=> string(1) "1" ["hits"]=> string(2) "57" ["xreference"]=> string(0) "" ["featured"]=> string(1) "0" ["language"]=> string(1) "*" ["readmore"]=> string(4) "1063" ["ordering"]=> string(1) "0" ["category_title"]=> string(7) "Podcast" ["category_route"]=> string(17) "resources/podcast" ["category_access"]=> string(1) "1" ["category_alias"]=> string(7) "podcast" ["published"]=> string(1) "1" ["parents_published"]=> string(1) "1" ["lft"]=> string(2) "82" ["author"]=> string(12) "Robyn Tongol" ["author_email"]=> string(33) "[email protected]" ["parent_title"]=> string(9) "Resources" ["parent_id"]=> string(3) "300" ["parent_route"]=> string(9) "resources" ["parent_alias"]=> string(9) "resources" ["alternative_readmore"]=> NULL ["layout"]=> NULL ["params"]=> object(Joomla\Registry\Registry)#5693 (3) { ["data":protected]=> object(stdClass)#5691 (95) { ["article_layout"]=> string(14) "momentum:newne" ["show_title"]=> string(1) "1" ["link_titles"]=> string(1) "1" ["show_intro"]=> string(1) "0" ["info_block_position"]=> string(1) "0" ["info_block_show_title"]=> string(1) "1" ["show_category"]=> string(1) "1" ["link_category"]=> string(1) "1" ["show_parent_category"]=> string(1) "0" ["link_parent_category"]=> string(1) "0" ["show_associations"]=> string(1) "0" ["flags"]=> string(1) "1" ["show_author"]=> string(1) "1" ["link_author"]=> string(1) "0" ["show_create_date"]=> string(1) "0" ["show_modify_date"]=> string(1) "1" ["show_publish_date"]=> string(1) "1" ["show_item_navigation"]=> string(1) "1" ["show_vote"]=> string(1) "1" ["show_readmore"]=> string(1) "1" ["show_readmore_title"]=> string(1) "1" ["readmore_limit"]=> string(3) "100" ["show_tags"]=> string(1) "0" ["show_icons"]=> string(1) "1" ["show_print_icon"]=> string(1) "1" ["show_email_icon"]=> string(1) "1" ["show_hits"]=> string(1) "1" ["record_hits"]=> string(1) "1" ["show_noauth"]=> string(1) "0" ["urls_position"]=> string(1) "0" ["captcha"]=> string(0) "" ["show_publishing_options"]=> string(1) "1" ["show_article_options"]=> string(1) "1" ["save_history"]=> string(1) "1" ["history_limit"]=> int(10) ["show_urls_images_frontend"]=> string(1) "0" ["show_urls_images_backend"]=> string(1) "1" ["targeta"]=> int(0) ["targetb"]=> int(0) ["targetc"]=> int(0) ["float_intro"]=> string(4) "left" ["float_fulltext"]=> string(5) "right" ["category_layout"]=> string(14) "momentum:newne" ["show_category_heading_title_text"]=> string(1) "1" ["show_category_title"]=> string(1) "1" ["show_description"]=> string(1) "0" ["show_description_image"]=> string(1) "0" ["maxLevel"]=> string(2) "-1" ["show_empty_categories"]=> string(1) "0" ["show_no_articles"]=> string(1) "1" ["show_subcat_desc"]=> string(1) "1" ["show_cat_num_articles"]=> string(1) "0" ["show_cat_tags"]=> string(1) "1" ["show_base_description"]=> string(1) "1" ["maxLevelcat"]=> string(2) "-1" ["show_empty_categories_cat"]=> string(1) "0" ["show_subcat_desc_cat"]=> string(1) "1" ["show_cat_num_articles_cat"]=> string(1) "1" ["num_leading_articles"]=> string(2) "14" ["num_intro_articles"]=> string(1) "0" ["num_columns"]=> string(1) "0" ["num_links"]=> string(1) "0" ["multi_column_order"]=> string(1) "0" ["show_subcategory_content"]=> string(2) "-1" ["show_pagination_limit"]=> string(1) "0" ["filter_field"]=> string(4) "hide" ["show_headings"]=> string(1) "1" ["list_show_date"]=> string(9) "published" ["date_format"]=> string(0) "" ["list_show_hits"]=> string(1) "0" ["list_show_author"]=> string(1) "1" ["orderby_pri"]=> string(4) "none" ["orderby_sec"]=> string(5) "rdate" ["order_date"]=> string(9) "published" ["show_pagination"]=> string(1) "2" ["show_pagination_results"]=> string(1) "1" ["show_featured"]=> string(4) "show" ["show_feed_link"]=> string(1) "1" ["feed_summary"]=> string(1) "0" ["feed_show_readmore"]=> string(1) "0" ["sef_advanced"]=> int(1) ["sef_ids"]=> int(1) ["custom_fields_enable"]=> string(1) "1" ["show_page_heading"]=> NULL ["layout_type"]=> string(4) "blog" ["menu_text"]=> int(1) ["menu_show"]=> int(1) ["page_title"]=> string(70) "Retirement - Strategies and Guides for your Retirement Goals | nestegg" ["menu-meta_description"]=> string(191) "We all want to enjoy our retirement, so Nest Egg has compiled a dedicated section to superannuation options, retirement planning, and what you can do to get the most out of your golden years." ["secure"]=> int(0) ["page_description"]=> string(7) "nestegg" ["page_rights"]=> NULL ["robots"]=> NULL ["page_heading"]=> string(70) "Retirement - Strategies and Guides for your Retirement Goals | nestegg" ["access-view"]=> bool(true) } ["initialized":protected]=> bool(true) ["separator"]=> string(1) "." } ["displayDate"]=> string(19) "2021-04-20 07:06:30" ["slug"]=> string(120) "16662:is-the-market-overheating-should-etfs-take-your-fancy-and-what-s-happening-to-the-low-and-middle-income-tax-offset" ["catslug"]=> string(11) "302:podcast" ["link"]=> string(133) "/resources/podcast/is-the-market-overheating-should-etfs-take-your-fancy-and-what-s-happening-to-the-low-and-middle-income-tax-offset" ["image"]=> string(58) "images/podcasts/Angel_Zhong_Steve_Waters_Timothy_Munro.jpg" ["image_alt"]=> string(0) "" } }

Latest Podcast

Is the market overheating; should ETFs take your fancy, and what’s happening t...

Resources

There is $17.5 billion in lost and unclaimed super across ...

Retirement

Critical steps outlined with property transfers and trust cloning

By Miranda Brownlee

December 02 2020
Share

Retirement

Critical steps outlined with property transfers and trust cloning

By Miranda Brownlee
December 02 2020

While trust cloning can be an effective strategy for transferring an asset from a related trust to an SMSF without paying duty, it is vital the right steps are followed to avoid issues with the anti-avoidance provisions, cautions a law firm.

Critical steps outlined with property transfers and trust cloning

By Miranda Brownlee

December 02 2020
Share

Speaking at the CGW Virtual SMSF Intensive Day, Cooper Grace Ward Lawyers associate Keeghan Silcock explained that in Queensland, there is no specific duty concession available where a client is looking to transfer an asset from a member into an SMSF.

However, it may be possible in certain circumstances to have a transfer from a related trust into an SMSF with no duty payable, Ms Silcock said.

She gave an example of a property owned in Queensland by a family trust that the client wants to transfer into super.

“We have a property which is owned in Queensland by the Trump Family Trust and we’re wanting to get that into super, so we set up a new SMSF, the Top Trumps SMSF, and we have Donald and Melania as the sole two members with equal member balances and that’s really important because Donald and Melania are also the sole income and capital default beneficiaries of the family trust,” she explained.

“What that means is that they are the only two people holding trust interests in both of these two trusts, the family trust and the family SMSF.”

Ms Silcock explained that a strategy can be used where Trump Pty Ltd declares that it ceases holding the property in Queensland as trustee for the family trust, and then commences holding that as trustee for the Top Trumps SMSF.

“In this example, we do that by having Trump Proprietary Limited acting as trustee of both of these trusts, but it is possible to do this where there are different trustees — you just need to include an additional step of having the SMSF appoint the other trustee as its custodian for the purposes of holding that property,” she stated.

“Due to the way the duty legislation in Queensland operates, this is not a dutiable transaction and so if it’s done properly, there is no duty payable in Queensland on this change.

“If we do this with Trump Proprietary Limited acting as trustee of both the trusts, it is possible to change the trustee for one of those entities at a later date, but we don’t suggest doing that in the short term because it can trigger anti-avoidance issues.”

Speaking in the same session, Cooper Grace Ward Lawyers partner Clinton Jackson said if the right steps are taken and everything is dealt with appropriately, there won’t be compliance issues with this strategy.

“With the trust cloning, if you were to immediately take steps that would defeat the trust cloning, there is a risk that the anti-avoidance provisions would apply,” he warned.

“In our experience though, most of our clients deal with this in a more sensible way and they’re not looking to change trustees or go too close to the line, and we’ve never had anyone have any issues with the anti-avoidance provisions with these types of transactions.”

Mr Clinton also pointed out that where SMSF professionals are looking to use exemptions to move property into super in NSW and Victoria, they still need to be conscious of section 66 of the SIS Act.

“[This] means that if we’re acquiring something from a related party, it needs to be business real property, so we can’t do residential, and it also needs [to be] at market value,” he said.

“Now market value could be one of two things; it could be a payment from the fund to that person, and in NSW, that would be OK, but in Victoria, it’s not.”

The other way to sort out a market value payment, he said, is for the fund to accept an in-specie contribution and therefore increase the value of the fund.

“That would effectively satisfy the market value requirements of section 66 because the fund has taken an increase and the member has made that as a contribution,” he said.

“So, there are definitely ways to deal with it. It’s just a matter of making sure we structure those transactions properly, and our documentation is really key.”

Forward this article to a friend. Follow us on Linkedin. Join us on Facebook. Find us on Twitter for the latest updates

Rate the article

Self managed super fund

ASIC winds up companies behind SMSF scam

The corporate regulator has stepped in to wind up several companies that have scammed millions from SMSF investors. ...Read more

Self managed super fund

SMSFs are shunning direct shares in favour of property – but is this a good idea?

For several years, SMSFs allocation to direct shares has been in decline. This trend accelerated after COVID. ...Read more

Self managed super fund

ATO issues draft legislative instrument for SMSF rollovers

The ATO has released a draft legislative instrument for consultation on the payment standard that will apply for SMSF rollovers and release authorities from 31 March 2021. ...Read more

Self managed super fund

Associations lobby government to ‘level the playing field’ with capital raisings

With SMSF and retail investors often missing out on ASX capital raisings, the SMSF Association and Stockbrokers and Financial Advisers Association have proposed a number of steps that could be taken...Read more

Self managed super fund

SMSF property spruiker sentenced in Brisbane District Court

A former Queensland property developer has been sentenced to five years’ imprisonment after being found guilty of six counts of fraud involving SMSF funds. ...Read more

Self managed super fund

COVID-19 reveals ‘flaws’ with account-based pensions

With the pandemic impacting the financial positions of many retirees, the inadequacy of account-based pensions has left many superannuation fund members exposed, according to a new research paper. ...Read more

Self managed super fund

Government pushed to rule out 3-year audits

While there have been no announcements regarding the proposed three-yearly audit cycle since June last year, one technical expert has urged the government to confirm that the measure is firmly “off ...Read more

Self managed super fund

Senate committee gives 6-member SMSF bill green light

The Senate economics legislation committee has recommended that the six-member SMSF bill be passed, despite concerns from Labor that it may lead to “perverse outcomes” for SMSF members. ...Read more