All the talk of property bubbles has clearly focused the minds at the Australian Tax Office on potential over-investment from Australia’s Self Managed Super Fund Sector.
The AFR reports this morning that:
The rush by self-managed superannuation funds to borrow to invest in real estate has been described by the Tax Office as a “problem child” that will need urgent correction.
ATO assistant commissioner for superannuation Matthew Bambrick said the tax office was working with the Australian Securities and Investments Commission to crack down on spruikers advising self-managed funds to get into property. ‘We are getting on the front foot because with limited recourse lending to buy real estate for a self-managed funds we have a problem child,’ Mr Bambrick said.
‘Watch this space.’
Watch this space indeed – the lack of overall increase in demand for credit certainly suggests that the recent uptick in property is being driven by buyers with cash – super funds maybe?
Spruikers and SMSF managers beware.
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