The Division 296 impost has prompted SMSF members looking at retaining assets in super to consider the tax impact of their death on their beneficiaries.
The rules for a super fund investing in property are complex because of the restrictions placed on some types of property that may be acquired (purchased or transferred in specie) from related parties.
The head of a prominent funds management house has predicted the proposed Division 296 tax will significantly diminish the supply of critical capital required for start-up companies as many of these enterprises rely on SMSFs for funding.