The state of the economy at the street level

[investtrader]

The first question to ask is "Does the Trust Deed allow it?"

Trust Deed says " any other investment allowed by superannuation law". Doesn't specifically mention short selling but does mention hedging. Also mentions derivatives etc including any synthetic instrument.
Additionally, Deeds can be amended , so my original question stands.

 

[IFocus]

There are ETF's (US market as you would know ) that were developed where you buy to go long but the ETF actually sells short haven't looked at them for years, have certainly traded the short side of markets for years (not any more) but to be honest never tempted to in the SMSF to me it's a vehicle that's suited for other purposes.

 

[Belli]

There are ETF's (US market as you would know ) that were developed where you buy to go long but the ETF actually sells short haven't looked at them for years, have certainly traded the short side of markets for years (not any more) but to be honest never tempted to in the SMSF to me it's a vehicle that's suited for other purposes.

The aspects of what an SMSF can or cannot do is a vexed issue in my view and I do consider it is always best to seek professional advice not from some random person on a forum. I know. Tedious, inconvenient, stupid and costs money. However, if the action doesn't pass audit, the ATO may not be kind. It doesn't care if you make or lose money really. It's main approach from what I have observed is whether the administration is correct and as well as compliance issues. Things such as does it comply with the fund's written investment strategy?

There are aspects which the Trustee may have forgotten which can impact investments such as:




See what I'm getting at? Being a Trustee of an SMSF is not only about plonking funds into this or that investment product. It is why I will never say, yes, you can do a particular investment with an SMSF.

 

[macca]

I would be getting it in writing before I did anything, the ATO is more "investment" orientated that profitable orientated.

I got warned nicely that speculative shares in a SMSF are frowned upon, blue chip mentality was recommended. (I had been running at a nice profit on specs for 3 years in the SMSF at that time)

My acct suggested that I stick to ASX300 for the SMSF and spec with my own money, he said if the ATO gets a nark on you it can be very painful and expensive to wriggle out of it.

Cancelling all tax concessions for the SMSF was mentioned but this was 10 years ago

 

[Belli]

I would be getting it in writing before I did anything, the ATO is more "investment" orientated that profitable orientated.

I got warned nicely that speculative shares in a SMSF are frowned upon, blue chip mentality was recommended. (I had been running at a nice profit on specs for 3 years in the SMSF at that time)

My acct suggested that I stick to ASX300 for the SMSF and spec with my own money, he said if the ATO gets a nark on you it can be very painful and expensive to wriggle out of it.

Cancelling all tax concessions for the SMSF was mentioned but this was 10 years ago

The ATO has a (very) broad view of investing v risks. I believe it could be worthwhile for Trustees to read it before rushing in where angels fear to tread.

Your self-managed superannuation fund (SMSF) investment strategy | Australian Taxation Office

How to develop your self-managed super fund (SMSF) investment strategy and achieve your investment objectives.

www.ato.gov.au

And you're spot on @macca. In my experience the ATO ain't nice to deal with if you get on the wrong side of it.

 

[over9k]

This is a bit random, but i tried Google and I have searched the forum and I can't find a definitive answer. Does anyone know, can you short sell shares in an SMSF?

In what way?

 

[farmerge]

Paying for top professional advice is the safe way to go. ATO audits far from pleasant and maybe expensive.. Could finish up with a broom handle jammed somewhere so as to sweep the floor.

 

[investtrader]

@Belli I understand your concerns regarding compliance issues. As background, I have run my own businesses for 40+years using complex legal structures, ran my SMSF for 10 years and I have also sat on the board of an Industry Super Fund for quite a few years. It is not that I want a random poster to give me legal advice. But, there is a lot of collective wisdom here and maybe someone has specific experience in this area.

@farmerge Yes, I always get advice before making any decisions such as this.

@macca I would debate the advice regarding only investing in ASX300 stocks. Doesn't seem logical to me. You could buy a share in the ASX300 and then next week it is not in the ASX300. Surely you Investment Strategy can cover this quite easily.

Anyway, thanks for the collective comments.

 

[Dona Ferentes]

Perth based construction group BGC ... "has been dealing with the challenging situation of a state bereft of skilled trades people,” the company said in a statement on Tuesday. It added that there was only 13,000 homes being completed each year in WA compared with 22,000 under construction. BGC said build costs had increased by 50 per cent in the past two years and its construction materials business was making up for the weakness in its home-building division.

BGC plans to relist on the ASX

 

[divs4ever]

Perth based construction group BGC ... "has been dealing with the challenging situation of a state bereft of skilled trades people,” the company said in a statement on Tuesday. It added that there was only 13,000 homes being completed each year in WA compared with 22,000 under construction. BGC said build costs had increased by 50 per cent in the past two years and its construction materials business was making up for the weakness in its home-building division.

BGC plans to relist on the ASX

sounds like a winning sales pitch ( not )

but i suppose it will depend on the float price

being in WA might be it's saviour as land prices sound be cheaper over there

but the skill shortage was completely predictable as they changed the apprenticeship/trade career system , and look where we are

 

[farmerge]

sounds like a winning sales pitch ( not )

but i suppose it will depend on the float price

being in WA might be it's saviour as land prices sound be cheaper over there

but the skill shortage was completely predictable as they changed the apprenticeship/trade career system , and look where we are

Not to sure that land prices are any cheaper here than dar utter side.

 

[sptrawler]

Not a good look.

https://www.news.com.au/finance/real-estate/renting/video-shows-australias-rental-crisis-as-dozens-queue-for-melbourne-rental-property/news-story/85eff02328e32c1863f540d6ae5d5e33

 

[qldfrog]

Not a good look.

https://www.news.com.au/finance/real-estate/renting/video-shows-australias-rental-crisis-as-dozens-queue-for-melbourne-rental-property/news-story/85eff02328e32c1863f540d6ae5d5e33

Let's bring more migrants, so that they can build new housing
And in Qld, make sure you can not build and rent a second lodging or locate a caravan on your 70 acres block for more than a month a year to save the koalas....
And if anyone intend to rent, tell them that now the tenant can have his pet pig inside, paint the rooms purple, and stop paying rent .and it is all good as you are all bad landlords.
Actions and ideologies have consequences
What a shamble...

 

[over9k]

Accurate.

 

[sptrawler]

An interesting year is on its way IMO, a lot of battery material miners going onto care and maintenance as China give us the squeeze. Could be a bit of mortgage stress on its way.

Core Lithium suspends mining at Finniss as lithium prices plummet

Core Lithium is reviewng its business activities and has halted operations at its Finniss project near Darwin with immediate effect.

www.mining-technology.com

IGO warns of another write-down amid job losses at nickel project

The company has started shedding workers at its troubled Cosmos nickel project.

www.afr.com

IGO quietly placed the Flying Fox nickel mine in WA into care and maintenance in November. Spotted Quoll, another mine that was part of the Forrestania operations, is scheduled to go into care and maintenance late in 2024.

 

[farmerge]

View attachment 168315

Accurate.

Any excuse will do

 

[farmerge]

Let's bring more migrants, so that they can build new housing
And in Qld, make sure you can not build and rent a second lodging or locate a caravan on your 70 acres block for more than a month a year to save the koalas....
And if anyone intend to rent, tell them that now the tenant can have his pet pig inside, paint the rooms purple, and stop paying rent .and it is all good as you are all bad landlords.
Actions and ideologies have consequences
What a shamble...

And Mr Frog if that is not bad enough then then scum burn the joint to the ground. Why because they had a bad childhood thought ai was a terrible landlord, cost me and She many thousands of dollars in lost income and court fees., and then having to prove that we didn't burn the place ourselves. the list is never ending. Arson Squad and Insurance company didn't know which was worst at that time.

 

[sptrawler]

An interesting year is on its way IMO, a lot of battery material miners going onto care and maintenance as China give us the squeeze. Could be a bit of mortgage stress on its way.

Core Lithium suspends mining at Finniss as lithium prices plummet

Core Lithium is reviewng its business activities and has halted operations at its Finniss project near Darwin with immediate effect.

www.mining-technology.com

IGO warns of another write-down amid job losses at nickel project

The company has started shedding workers at its troubled Cosmos nickel project.

www.afr.com

IGO quietly placed the Flying Fox nickel mine in WA into care and maintenance in November. Spotted Quoll, another mine that was part of the Forrestania operations, is scheduled to go into care and maintenance late in 2024.

Another one bites the dust, it will be interesting to see if the Pinjarra and Wagerup refineries get a structural review, in light of the emission and ecological issues dogging them.
The port facility would be retained, as it is a strategic piece of plant, for exporting the product.

Alcoa to halt production at Kwinana alumina refinery with loss of around 1,000 jobs

Around 1,000 workers are set to lose their jobs as Alcoa announces it will phase down production at its alumina refinery in Perth's south.

www.abc.net.au

United States mining giant Alcoa has announced it will halt production at one of its three West Australian alumina refineries, with more than 750 employees set to lose their jobs.
Announcing the move on Tuesday morning, Alcoa said the plant's workforce would be cut from about 800 to about 250 in the third quarter of this year, when all production would stop, and that it would further reduce staff numbers to about 50 in 2025.
The company's executive vice president, Matt Reed, said the decision was being made due to the plant's age, operating costs and current market conditions.
The shutdown of production at the Kwinana plant is also expected to affect around 250 contractors, according to the WA government, bringing the total impacted number of workers to about 1,050.

The company employs 4,850 people across Australia, about 4,300 of them in WA.

The news comes as Alcoa comes under increasing scrutiny over its mining operations in the environmentally vulnerable jarrah forests of WA.
In November, a group of scientists, including some high profile names like professor Tim Flannery, called for a halt to the company's operations in order to avoid what they described as an "extinction catastrophe".

And in December, the state's environmental watchdog announced it would for the first time conduct a rigorous assessment of the company's bauxite operations.

 

[divs4ever]

hmmm ! dodged another bullet by not buying Alcoa when it was listed on the ASX , but maybe AWC will be hit with contagion

( do i still want to dabble in AWC .. thinking thinking )

 

[sptrawler]

hmmm ! dodged another bullet by not buying Alcoa when it was listed on the ASX , but maybe AWC will be hit with contagion

( do i still want to dabble in AWC .. thinking thinking )

I used to trade AWC, but until it is clear how they are going to abate their emissions, I'm steering clear.
Kwinana refinery was an old plant and way past its use by date, the bigger issue is the Pinjarra and Wagerup refineries IMO, it is going to be interesting to watch energy intensive industries between now and 2030.