CORPFIN 6011OL: SMSF Strategic Advice Assignment Semester 2

This document provides a comprehensive solution to an SMSF Strategic Advice assignment, addressing three key questions related to self-managed superannuation funds (SMSFs). The first question explores the advantages and disadvantages of using a Regulation 13.22C unit trust plan to acquire property through an SMSF, focusing on flexibility, borrowing options, development restrictions, and refinancing capabilities. The second question examines the importance of an investment strategy for SMSFs, the consequences of operating without one, and the key considerations for developing a compliant investment strategy. It also addresses the responsibilities of trustees and their potential liabilities. The third question delves into the implications of Limited Recourse Borrowing Arrangements (LRBAs) for acquiring a farm, including the sole purpose test, private residence considerations, and restrictions on repairs and maintenance. It also explores alternative approaches like private unit trusts and tenant-in-common arrangements. The solution references relevant regulations and provides practical advice for managing SMSFs effectively.