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Providing tax, superannuation and trust education and precedent products

Warrant Deeds

The law surrounding the use of warrant trusts to enable a self-managed superfund to borrow has been in place since 2007. Many products still fail to take account of not only the SIS Act but also the Income Tax Assessment Act and various stamp duty acts of the States.

The major concern with a warrant arrangement is ensuring that it complies with section 67A & 67B of the SIS Act. Other concerns include the absolute entitlement of the trustee of the self managed superfund to the asset and the stamp duty payable on the purchase and subsequent transfer of the asset. Another major concern is where the individuals either borrow themselves or use their own funds and lend to the SMSF trustee. This is where the non-arms length income provisions of the ITAA97 may apply.

Another important factor is the application of the State Revenue laws and navigating the establishment and finalization of the borrowing arrangement.

If you have any queries regarding converting your existing trust deed or ordering a new trust please Contact Us.

Borrowing in a SMSF has many dangers especially the CGT consequence.
Many Warrant Trusts contain clauses that trigger a CGT when the loan is repaid. Advisors need to know what dangers exist with SMSF Borrowings.
Confused over what should be contained in a superfund deed?
Many advisors have been putting their clients into superannuation fund deeds that are approximately 100 pages. The superfund deed should contain some clauses regarding borrowing and pensions, however a short form deed is more than adequate and can be amended at a later stage.
Warrant Trusts - Login/Register to Access
  • SMSF Document Checklist
  • SMSF Instalment Warrant Brochure
  • Instalment Warrants & Accounting Entries
  • Instalment Warrants & The CGT Problem

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To order a Warrant Deed or any of our other products and service, please create or sign in to your Macquarie Group Services account here.