Save
Big tax bills could face investors with property in super
One of Australia’s top SMSF experts believes investors could be in for a rough ride if they have property in their super, as the government continues to tighten regulations and legislation.

Big tax bills could face investors with property in super
One of Australia’s top SMSF experts believes investors could be in for a rough ride if they have property in their super, as the government continues to tighten regulations and legislation.

In recent months and years, the ATO has been particularly focused on stamping out related-party borrowing in superannuation, which in effect refers to borrowing from a source that is not commercial, like a bank or credit union.
The Tax Office has been concerned about borrowing on non-commercial terms for various reasons, including that SMSFs could be securing rates and structures that would otherwise not be accessible for other funds.
This financial year, the ATO has new data matching capability on its hands, and national leader of superannuation at accounting firm BDO, Shirley Schaefer, believes it’ll be all eyes on borrowing arrangements.
“Now that all those tax returns have been lodged, you might find the ATO does a bit of data matching and undertake a few reviews in this area,” said Ms Schaefer.
If it’s found that funds are not operating on commercial terms, they could be hit with the non-arm’s length income provisions, or NALI, which could mean a tax bill of up to 15 per cent. NALI is taxed at the top personal marginal rate.
This is the latest in a string of clampdowns from the government and regulators on borrowing in superannuation.
At the moment, a bill is before the Senate to have the outstanding loan amount on a borrowing within super added to a member’s total super balance. In many cases this has made borrowing in superannuation less attractive, as it means a leveraged asset could push a superannuation fund over the prescribed caps.

Tax saving
How are Australians planning on spending their tax savings?
Essential bills, savings accounts, Christmas gifts and exchange-traded funds appear to be the big winners from the latest round of tax cuts, new research has revealed. ...Read more

Tax saving
First in the world: SA imposes EV tax
The South Australian government is the first government in the world to introduce an electronic vehicles tax following an announcement by the treasury. ...Read more

Tax saving
5 tips as tax deadline looms
Australians are being warned that they have just two weeks left to get their finances in order if they have not posted a tax return yet. ...Read more

Tax saving
ATO warns businesses of JobKeeper scam
The ATO is warning the community about a JobKeeper scam which is asking members to enter personal information. ...Read more

Tax saving
Why fast-tracking tax cuts won’t stimulate the economy
Treasurer Josh Frydenberg has flagged that previously legislated tax cuts could be moved forward in a bid to help stimulate the Australian economy. ...Read more

Tax saving
Last-minute items to check off before 30 June
With the end of the financial year almost here, an accounting firm has outlined key changes with tax returns this year and flagged some last-minute tax strategies to consider before 30 June. ...Read more

Tax saving
Australia’s richest owe the Tax Office $772m
Australia’s elites and private companies fell $772 million in taxes due to miscalculations and deliberate tax avoidance, the Australian Taxation Office has revealed. ...Read more

Tax saving
Do you have to pay taxes on a trust?
Trusts are usually set up for business, estate planning and investment purposes to separate the legal and beneficial ownership of assets held within the structure. ...Read more

Tax saving
How are Australians planning on spending their tax savings?
Essential bills, savings accounts, Christmas gifts and exchange-traded funds appear to be the big winners from the latest round of tax cuts, new research has revealed. ...Read more

Tax saving
First in the world: SA imposes EV tax
The South Australian government is the first government in the world to introduce an electronic vehicles tax following an announcement by the treasury. ...Read more

Tax saving
5 tips as tax deadline looms
Australians are being warned that they have just two weeks left to get their finances in order if they have not posted a tax return yet. ...Read more

Tax saving
ATO warns businesses of JobKeeper scam
The ATO is warning the community about a JobKeeper scam which is asking members to enter personal information. ...Read more

Tax saving
Why fast-tracking tax cuts won’t stimulate the economy
Treasurer Josh Frydenberg has flagged that previously legislated tax cuts could be moved forward in a bid to help stimulate the Australian economy. ...Read more

Tax saving
Last-minute items to check off before 30 June
With the end of the financial year almost here, an accounting firm has outlined key changes with tax returns this year and flagged some last-minute tax strategies to consider before 30 June. ...Read more

Tax saving
Australia’s richest owe the Tax Office $772m
Australia’s elites and private companies fell $772 million in taxes due to miscalculations and deliberate tax avoidance, the Australian Taxation Office has revealed. ...Read more

Tax saving
Do you have to pay taxes on a trust?
Trusts are usually set up for business, estate planning and investment purposes to separate the legal and beneficial ownership of assets held within the structure. ...Read more