Andrew Yee is a Director in the Wealth Management Division of HLB Mann Judd. He has over 15 years' experience in the area of superannuation. This experience includes carrying out audits on APRA regulated funds and SMSFs. He is also a member of CPA Australia and the SMSF Association and holds a Bachelor of Economics and a Master of Taxation.
He joined Natalie Bamber of Legalwise Seminars to discuss issues about investing in commercial property in SMSFs following the recent reforms.
You can find the full Q&A below.
Could you tell us a little bit about yourself, Andrew?
I am a director in the Wealth Management Division of a mid tier chartered accounting firm, HLB Mann Judd. I have been with the firm for about 15 years, specialising in superannuation and taxation with a focus on SMSF compliance, auditing and advisory. I am currently assisting clients in transitioning to the new superannuation rules commencing 1 July 2017.
How will the changes to superannuation from 1 July 2017 effect those looking to invest in commercial property in their SMSFs?
The changes will make it more difficult for people to fund an investment in commercial property via their SMSF, especially for larger properties. This is due to the reduction in contribution caps from a maximum of $35,000 per year to $25,000 per year for concessional contributions and from $180,000 per year to $100,000 per year for non-concessional contributions. Furthermore those with $1.6 million or more in superannuation will not be able to make non-concessional contributions to superannuation. The reduction in the contribution caps will also affect the ability of an SMSF to obtain a limited recourse loan to acquire a commercial property and for existing loans, restrict the ability of the SMSF to make loan repayments.
In light of recent changes and reforms, do you have any best practice advice for fellow practitioners that may assist them to get through the coming year?
If you have clients affected by the changes, ensure you have provided them with the information that are relevant to their needs. For you own education and knowledge, make sure you do your own research on the new changes by reading at least the ATO materials on the changes, attending seminars and seek specialised advice if needed.
You can hear more from Andrew at the 3rd Annual Superannuation Essentials Conference, being held on Wednesday 25 and Thursday 26 October at the Rydges Sydney Central Hotel.