Day traders minimising tax

[CAFA1234]

i thought you can trade in a superfund your superfund cant have a margin loan though...so your trading with 100% your cash, this law is being changed to allow margin loans soon.

Please see my previous post regarding the ATO and SIS. If the post is too technical or difficult to understand then Please Please get good legal advice before using your SMSF as a Day Trading platform. Yes you can trade shares e.g. buy them and even sell them, as part of a strategic process but you can't turn them over every other day.

This area is a minefield and as you can see from other posts there is some disagreement and confusion about this assertion. The SIS training courses for Financial Planning make it very clear that 'trading' within a SMSF is not allowed.

As with many areas, time can change these views, but I would be getting a written authorization from the ATO if you want to do this.

If running a business from within a SMSF is OK, why don't I run my contracting business via the SMSF? I can still pay myself a salary and keep leftover profits in the fund and taxed at only 15%. You can see the problem from the ATO point of view? If anyone out there thinks this can be done then please, please send referencing material quickly and I'll eat tons of humble pie.

 

[Tom Ronalds]

i thought you can trade in a superfund your superfund cant have a margin loan though...so your trading with 100% your cash, this law is being changed to allow margin loans soon.

Nonsense. Super funds cannot have margin loans in any shape or form. They can't even allow for example a property that they may own as tenants in common with an individual to be used as a guarantee/equity for the loan against it.

You are confusing the recent change of rules on instalment warrants with ordinary loans. Even with the warrants, there is plenty of gossip in the industry that the current government will be forced to soon modify the law, as these arrangements are now in some cases being used in ways that are clearly not consistent with the nature/intention of the SIS regulations.