Bankruptcy & SMSFs

With the growing popularity and growth in the Self-Managed Superannuation Fund (SMSF) market, it is inevitable that the interaction of  the bankruptcy rules and SMSF rules will come to a head.

 

Therefore, it’s important that we look at how these two elements work together.

 

If your SMSF has a corporate trustee, the superannuation legislation requires that all members of the SMSF be directors of the corporate trustee.  However, when a member becomes bankrupt, the Corporations Act prohibits a bankrupt from acting as director of any company.  Furthermore, under the superannuation legislation a bankrupt is considered a “disqualified person” meaning that they cannot take part in the management of the SMSF.

 

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Whats Your Score?

Australia’s largest credit reporting agency Veda recently introduced a personal credit rating score.

 

Available to consumers for the first time, the VedaScore expresses a number between 0 and 1200 summarising your credit history at a specific point in time.

 

The higher your score the more creditworthy you are. 

 

The credit score measures your credit activity, including the number of credit inquiries for the past year, the types of credit applications and your pattern of shopping for credit – including the number and type of lenders you have approached for credit.  It also includes any overdue debts which have been listed by any credit providers.

 

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Gympie Region Property Statistics

According to Australian Property Monitors in the 12 months to 31 August 2013, a total of 185 properties were sold in the Gympie area at a median price of $235,000.

 

Confirming the long-held view that Gympie rarely sees the “peaks and troughs” of other regions, the capital growth figures to 31 August 2013 were:

 

3-month

12-month

3-year

5-year

10-year

0%

0%

0.42%

-3.1%

7.6%

  

 

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Do You Have Solar Panels?

More and more homeowners are installing solar panel systems on their homes. 

 

In some cases, the solar panel system may produce more electricity than is being consumed.  This results in the homeowner often “selling” the excess electricity back to the electricity company which will be released into the electricity grid.  In effect, the homeowner becomes an electricity retailer.

 

The obvious question, at least from a taxation perspective, will the payments received from the electricity company be taxable?

 

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