Eureka Correspondence

Tax returns, investing overseas and property.

The great super release

Bruce Brammall’s article, “The great super release,” about the Eureka Report member who hadn't lodged a tax return for their SMSF for several years sent a chill down my spine.
I have such a fund and I comply with every aspect of the ATO regulations. I use a trusted firm of chartered accountants to ensure compliance.
People like this give SMSFs a bad name and attract the unwanted attention of the ATO and others looking to further regulate an already heavily regulated but concessionally-treated investment vehicle.
I think the need to comply must be emphasised to Eureka Report members. They shouldn’t think that such flagrant breaches of the rules can be easily fixed. Trustees should also know that the costs of not complying can be horrendous. For example the fund can lose its zero tax rate concessions when in pension phase if the required minimum pension is not paid.

Investing overseas

A number of recent Eureka Report articles discuss the benefits of investing overseas (see It’s time to diversify offshore and Global growth: Are you being left behind?). I have identified several ETFs that focus on overseas markets, but I haven’t yet found one with exposure to just UK stocks. Are there any such ETFs available? Your help would be most appreciated.
Name withheld
Editor’s response: Thanks for your letter. There are currently no Australian-listed ETFs that track the UK stockmarket alone. I spoke to iShares and they said that while there are no immediate plans to launch a UK-focused ETF, 32.66% of the iShares European ETF (IEU) is invested in UK stocks.

If everyone’s buying, who’s selling?

I understand the excitement about real estate clearance rates, and that house prices in Sydney in particular appear to be rising. what I think would be informative would be to find out who is selling, and why. If prices are rising, why sell? If you are selling, were you an investor who bought in 2006 and have finally seen prices come back to what you paid that year? Are you an owner occupier moving north to retire? Are you upsizing or are you downsizing? I think information on the sellers would be informative for investors.That’s my suggestion. Thanks.
Name withheld

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