This episode, which will be in a few separate segments due to the length, discusses different types of investment in your SMSF and taxation issues in acquiring and disposing of such investments.

Just a correction in this segment -  I may have mentioned that the SMSF can have units in a unit trust, but the correct rendering is that an SMSF cannot invest in a fixed unit trust that is carrying on a business - this is not allowed under the SIS regulations. The only way an SMSF can invest in a fixed unit trust is if that trust has a property used ONLY and EXCLUSIVELY for investment purposes.

An SMSF also cannot hold shares in a private company, regardless of whether it runs a business or is an investment company. I may have mentioned that it can, provided that the in-house asset rules (5%) are not breached, but the SMSF cannot invest in a private company regardless.

This is not a substitute for financial advice of any type, so please see your professional accountant/tax agent for more specific advice. I work in the SMSF area as well, so if you wish to contact me, my email is philip@macorp.com.au. I will be happy to arrange an appointment with you.