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As the summer holidays linger or fade, Property Observer has found a handful of holiday shacks for sale. And one as cheap as $75,000, if you want in Tasmania, or from $275,000 on the mainland.

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Their basic, no-frills design have possibly helped influenced architects such as Glen Murcutt and Drew Heath seek their quintessential utilitarian design.

Even after the result of years of sea spray, one does come close to a $1 million asking price.

[smartcode_project:default project_id=5559]

Just looking at them ought to bring back memories of jumping off sand dunes and baking hot car trips, being traumatised by older siblings and falling off bikes.

So take trip down memory lane – or in one case up the Murray River – just don’t forget your wallet.

$500,000 plus
<a href="https://www.realestateview.com.au/Real-Estate/8-diggers-crescent-great-mackerel-beach/Property-Details-buy-residential-2201871" target="_blank">8 Diggers Crescent, Great Mackerel Beach</a>, NSW

<img alt="8diggers" height="353" src="/images/stories/2012/12/8diggers.jpg" width="470">

Located not far from the western foreshores of Pittwater directly opposite Palm Beach, this one's an almost idyllic hideaway. The house was originally built in the 1950s and has had very little change since then expect for its bathroom being updated in the 1960s. As the agent Kathyrn Hall suggests - think back to days of no television, a more simplistic life, simple pleasures of a relaxed holiday atmosphere where you swam at the beach, board games and card games at night. The house itself is a very simple fibro cottage, light and airy, all on one level. And in very original condition, but in good order.

 

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$250,000

<a href="https://www.realestate.com.au/property-residential+land-nt-dundee+beach-200375791" target="_blank">3732 Launceston Road Dundee Beach</a>, Northern Territory

<img alt="dundee" height="353" src="/images/stories/2012/12/dundee.jpg" width="470">

A quarter of a million dollars will buy you this remote shack build from two storage containers on a 10 hectares of arid bushland about  three hours' drive south-west of Darwin and a short drive from the Timor Sea. It’s listed for sale through Margaret Fanning of Elders Real Estate and described as an “ideal spot for a quiet weekend or a fishing shack". The shack is subdivided into two containers with a breezeway in the centre for enjoying a cold beer and presumably, fish caught on the beach or in the nearby Launceston inlet. One of the containers is air-conditioned and is used for sleeping and the other is used for storage.

 

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$299,000 plus

<a href="https://www.realestate.com.au/property-house-sa-walker+flat-112039323" target="_blank">Swan Reach Road, Greenways Landing, SA</a>

<img alt="greenways" height="353" src="/images/stories/2012/12/greenways.jpg" width="470">

Hey, they don't make them like this anymore! This is one of eight shacks set close to one of the only boat ramp for miles on this portion of the Murray River. The freehold river front shack has plenty of room for boats, parking for cars, bikes and tents. Its got two bedrooms, water tank, pump shed, paved river front patio with fire pit, shaded lawns, sunset vistas with tame kookaburras and pelicans. Just a short boat ride to the legendary Swan Reach Hotel. Comes on a walk-in-walk-out basis with Torrens title, water licence and development plans (STCC).

 

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 $640,000 - $690,000

<a href="https://www.fletchers.net.au/3106069/247-The-Esplanade-Indented-Head" target="_blank">247 The Esplanade Esplanade, Indented Head</a>, Vic

<img alt="indented" height="264" src="/images/stories/2012/12/indented.jpg" width="470">

This fibro beach house is just metres from the beach and bay. Its been for sale with no price adjustment since listed in May 2012 through Fletchers. Hopefully the toes don't get wet on the front decking when the king tide comes in. It is bring your own tree.

 

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$275,000

<a href="https://www.realestate.com.au/property-house-wa-falcon-112488079" target="_blank">12 Maranel Street, Falcon</a>, WA

<img alt="maranel" height="353" src="/images/stories/2012/12/maranel.jpg" width="470">

Cute might be stretching it, but at just 350 metres to the beach, this two-bedroom cottage is well located. It's apparently on a quiet street on a lovely treed 885-square-metre block. Michael Goodwin at Harcourts Mandurah had the listing, selling it just a few days ago in early 2013. It had been for sale since October 2012, having last traded at $300,000 in early 2010.

 

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$185,000

<a href="https://www.realestate.com.au/property-residential+land-qld-burrum+heads-200360715" target="_blank">40 Orchid Drive Burrum Heads</a>, Queensland

<img alt="orchiddr" height="353" src="/images/stories/2012/12/orchiddr.jpg" width="470">

Though this “lovers'” beach shack may have all the charm of a prison cell, it is just a short stumble the “very private” Sirenia Beach and will appeal to those holidaymakers who love the idea of a morning or evening beach walk searching for sea shells and other “treasures”. There’s also the opportunity to fish on the beach, the saltwater lake or in Burrum River. The property itself is a fully furnished three-bay colorbond shed (all indoor and outdoor furniture included in the sale price) and includes a shower, toilet and kitchenette.

 

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$75,000

<a href="https://www.realestate.com.au/property-house-tas-cramps+bay-112305039" target="_blank">78 Cramps Bay Road Cramps Bay</a>, Tasmania

<img alt="cramps" height="353" src="/images/stories/2012/12/cramps.jpg" width="470">

Affordable fishing cabins in Tasmania's Central Highlands have a naive romantic charm. This one's many great features include direct lake views and a boat ramp/lake access located within a lure throw. The 38-square-metre cabin is heated by a little Red Embers freestanding wood heater. The property is listed on a walk-in-walk-out basis, including all furniture, white goods, cookware, generator and presumably the firewood. Paul Kaine at Roberts Real Estate Longford has the 2,518-square-metre listing. 

 

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$970,000

<a href="https://www.realestate.com.au/property-house-nsw-arrawarra+headland-107302421" target="_blank">14 Second Avenue, Arrawarra Headland</a>, NSW

<img alt="secondave" height="353" src="/images/stories/2012/12/secondave.jpg" width="470">

Not many people paint their houses pink these days, it’s a shame. With its holiday décor, a granny flat out the back and various hidden treasures, this home has almost certainly been the site of many a teenage holiday romance. The four-bedroom property sits on a generous 750 square metres, and it’s literally metres from the beach. It’s a seven-hour drive north of Sydney, probably a two day affair back in the day. It’s being sold by Mark Killian from Nicole Cardow Real Estate Woolgoolga and Matt Dougherty at LJ Hooker Grafton.

 

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$289,000 - $299,000

<a href="https://www.realestate.com.au/property-house-sa-aldinga+beach-112618315" target="_blank">12 Maurice Street, Aldinga Beach</a>, SA

<img alt="maurice" height="353" src="/images/stories/2012/12/maurice.jpg" width="470">

This one's called Wacko Shacko – set in the scrublands just a few minutes walk from the access ramp to Aldinga Beach, under one hour from Adelaide. Wacko Shacko has three bedrooms, open plan living areas, and a well-equipped kitchen. The property is offered furnished – through Deb Tucker at Raine &amp; Horne McLaren Vale. It last sold for $235,000 in 2004. It's a holiday rental too, <a href="https://www.rent-a-home.com.au/propertydetails.aspx?PropertyID=41685#requestAQuote" target="_blank">currently renting at between $80 and $140 a night</a>.

 

 
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Nostalgic fibro holiday home shacks from $75,000 plus

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Nicole Kidman, the actress, has given Vogue a video tour of her NSW Southern Highlands retreat, Bunya Hill. It was the latest of the international magazine's 73 Questions series.

The actress and her country music star husband, Keith Urban snapped up <a href="https://video.vogue.com/watch/73-questions-inside-nicole-kidman-s-australian-farm" target="_blank">Bunya Hill</a>, a 45-hectare black Angus cattle stud at Sutton Forest, for $6.5 million in 2008.

Long hidden behind hedging, the Sutton Forest property, with its magnificent 1878 Georgian mansion and impressive pedigree, has wide sandstone verandas, pressed-metal ceilings, a carved cedar staircase and 10 marble fireplaces.

It has the proportions and details that made it worthy to be leased as a vice-regal rural retreat for Lord Augustus Loftus, a governor of NSW in the colonial 1880s.

Bunya Hill was sold by Peter Coad, head of global markets at National Australia Bank, and his wife, Helen, through Sothebys and Drew Lindsay Real Estate. 

[smartcode_project:default project_id=5897]

It is set in the Sutton Forest village located in New South Wales precinct where Hume Coal now intends to build an underground coal mine.

Details of the plans were advised last week, submitted to New South Wales Government as a first step in the approval process.

The aim is to extract coal from the Wongawilli coal seam in the Sutton Forest region, while protecting the ground water and the environment, but most locals, including the celebrity couple have huge apprehension.

[smartcode_project:default project_id=6284]

Surface infrastructure is proposed to be developed on predominately cleared land owned by Hume Coal. Over half of the remaining sections of the project area are scheduled to continue to be, used for livestock grazing, small-scale farm businesses and hobby farms. There are a small number of vineyards present, principally Cherry Tree Hill Wines, and Eling Forest, with the Belanglo State Forest covering the north-western portion of the project area and contains introduced pine forest plantations, areas of native vegetation and several creeks that flow through deep sandstone gorges.

The project area is traversed by several watercourses including Oldbury Creek, Medway Rivulet, Wells Creek, Wells Creek Tributary, Belanglo Creek and Longacre Creek, all of which ultimately discharge to the Wingecarribee River, located around 2 km north of the project area. The Wingecarribee River’s catchment forms part of the broader Warragamba Dam and Hawkesbury-Nepean catchments. Medway Dam is also adjacent to the project area. 

Hume Coal has undertaken extensive groundwater investigations to characterise the existing hydrogeology of the project area and surrounds, including groundwater depth, quality, flow and uses. Investigations are ongoing, though the 65 groundwater monitoring points that have been established to date, comprising mainly purpose-built groundwater monitoring bores, as well as vibrating wire piezometers.

Project director, Greig Duncan stated that the company had commenced <a href="https://www.humecoal.com.au/hume/assets/File/Home%20page%20PDF%20and%20images/J12055_SEARs%20application%20supporting%20document_FINAL_170715.pdf" target="_blank">detailed environmental and geological studies</a> as well as extensive engineering design analysis to make sure the local community received the best outcome.

[smartcode_project:default project_id=6876]

It is noted that, to avoid any perception that the Hume Highway could be affected by future, longterm ground movements, no mining will occur beneath these features, other than development of underground roadways (first workings development) required for access.

The planned coal mine will mine 35% of coal from the available reserves and leave the rest underground to hopefully provide long-term ground stability and reduce impacts on groundwater.

It is expected to create 400 jobs for the local community.

Greig Duncan assured he project will not involve coalbed methane, opencast or longwall mining.

"It will have no impact on town water or surface water such as dams.

"Furthermore, we’ve taken great care to design a mining system that will have no long-term impact on the groundwater system, ensuring it remains intact and undamaged for future generations.”

[smartcode_project:default project_id=29679]

The innovative mining system is being spriuked as an "Australian first." 

The project incorporates a number of leading practice innovations, "some of which set a new benchmark for underground coal mining in NSW" with the rail wagons used to transport product coal off-site being covered.

Surface infrastructure is proposed to be developed on predominately cleared land owned by Hume Coal, or for which there are appropriate access agreements in place with the landowner, at sites that are relatively free from environmental and other constraints.

With proximity to rail infrastructure and Port Kembla, the Hume Coal Project involves operation of an underground coal mine over a 22 year-period, which will extract approximately 50 million tonnes of coal from the Wongawilli Seam, followed by a closure and rehabilitation phase of nominally two years.

There will be production of nominally up to three million tonnes per annum of metallurgical and thermal coal for international and domestic markets.

There will be peak workforces of approximately 400 full-time equivalent employees during construction and approximately 300 full-time equivalent employees during operations.

[smartcode_project:default project_id=94621]

Hume Coal Hume Coal is a wholly owned subsidiary of POSCO Australia, a subsidiary of Korean based POSCO, the world’s sixth-largest steel maker.  Hume Coal currently has two advisory groups, the SRG and WAG.

Hume Coal established a SRG formed in 2014 chaired by Paul Mitchell OAM and is made up of community representatives.

The Hume Coal WAG is made up of representatives from government, local business, landowners, special interest groups and Hume Coal and its technical advisors. It was formed in 2011 and is chaired by the Hon. Gary Nairn.

Hume Coal holds exploration Authorisation 349 (A349) approximately 100kms south of Sydney and 3kms west of Moss Vale, in the Wingecarribee local government area.

Extensive exploration has been undertaken within A349 since the 1950s and the current exploration authorisation was granted in 1985. It was acquired by Hume Coal in 2010. Concurrent with lodging this document, a referral is being made to the Commonwealth Department of the Environment to determine whether or not approval is also required under the Commonwealth Environment Protection and Biodiversity Conservation Act 1999.

An EIS is a requirement of the approval process.

The project area is in a semi-rural setting, characterised by grazing properties, small-scale farm businesses, hobby farms, natural areas, forestry, scattered rural residences, villages and towns and some industries and major infrastructure.

[smartcode_project:default project_id=6656]

A number of State and locally listed heritage places are present in the local area.

The villages of Sutton Forest and Exeter are within A349, but both have been excluded from the project area.

Medway, New Berrima and Berrima villages are also nearby, while Moss Vale, Bowral and Mittagong, located between approximately 3 and 15 km east and north-east of the project area, are the LGA’s main regional centres.

Industrial and manufacturing facilities in the locality include the substantial Berrima Cement Works and Berrima Feed Mill on the fringe of New Berrima, as well as brickworks, metal fabrication, mining equipment manufacture and quarries. Berrima Colliery’s mining lease adjoins the project area’s northern boundary.

Berrima Colliery closed in 2013 after almost one hundred years of operation and is currently in care and maintenance.

The Wingecarribee LGA is also a retirement destination with an aging population, with approximately 42% aged over 50 – significantly higher than the NSW average of 33% (Australian Bureau of Statistics 2011).

Main picture of Bunya Hill (dated 2008) from Drew Lindsay Real Estate. 

Carousel images courtesy of US Vogue Magazine.
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Nicole Kidman shows off Bunya Hill, Sutton Forest for first time

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GUEST OBSERVATION
The fastest growing sector in the economy today is not mining, retailing or even education. It’s superannuation, which accounts for almost 30% more than the total savings held by the banking and mutual sector.
Self-managed superannuation is the fastest growing form of investment vehicle.
This has altered the landscape of both property and share investment. In the property market there are well-established regulations and safeguards. The stock market is a different story.
The proposed takeover of David Jones by the South African-based Woolworths and the deal made by Woolworths to buy Solomon Lew’s stake in David Jones, who happens to own an equally large share of Country Road (another takeover target of Woolworths), highlights the problem.
The board of the takeover target recommends to its shareholders what to do, but there is no formal requirement for shareholder approval. It’s assumed if the shareholders sell, that’s their approval. If they don’t sell, they don’t approve.
In the case of David Jones, a wealthy, assertive investor is getting a side deal not available to other investors.
Why should this happen?
In other countries, a formal takeover requires shareholder approval, thus discouraging side deals to occur where some walk away with large profits and others get what they can.
David Jones
The David Jones takeover provided an opportunity for some to simply profiteer, to the extent they could make more money linking this deal with others, thus cornering Woolworths to pay for deals it may not have planned.
If anything, the David Jones scenario raises questions as to whether a takeover of this nature is manipulative, unfair to ordinary shareholders and a distortion of the market mechanism.
The Australian Securities and Investments Commission (ASIC) has intervened, asking questions about the side deal protecting the interests of David Jones' shareholders by intervening in Woolworths' $2.2 billion takeover bid for David Jones.
As ASIC threatens to withhold its consent to the scheme of arrangement, a core part of the $2.2 billion takeover is arguing that a collateral benefit to one shareholder is not available to the other shareholders. The board is so keen to push the takeover that they are prepared to sell the takeover on the basis that the millions made on the side by Lew should not kill the deal.
Directors should of course be supporting the interest of the company as a whole and of all the shareholders. In the past the <a href="https://www.theguardian.com/business/2006/dec/14/australia.theairlineindustry">Allco Finance Group takeover of Qantas</a> had the same set of facts. A takeover favouring those few in particular linked to the board is a further reason for ASIC’s intervention.
ASIC is not about increasing share prices - it’s about access to a fair price. If one shareholder gets a huge side bonus which increases the prices, should those getting the crumbs be happy? Are their shares the same of those getting the bonus?
ASIC had failed in the Federal Court to force David Jones to secure an <a href="https://www.smh.com.au/business/retail/asic-steps-into-david-jones-country-road-battles-with-demand-for-independent-valuation-20140702-zstnq">independent valuation of the “collateral benefit”</a> that Woolworths was offering to one of its shareholders simply to buy his support for the David Jones scheme of arrangement. ASIC can always withhold a letter of consent for the scheme, on the grounds that all David Jones shareholders are not being treated equally.
In response, David Jones has provided shareholders with additional information to help show shareholders how this deal was done.
All this could be resolved if shareholders were given the complete, true facts in an accessible manner, and if takeover predators were forced to make the same offer to all and let shareholders decide.
Why the loophole exists
Law reform in the area of takeovers is well overdue and belongs to another age. Unlisted companies don’t require shareholder approval for takeovers on the presumption that shareholders don’t have enough information. The idea is public information and scrutiny aren’t as readily available as for listed companies.
This thought process belongs to a pre-internet era and is not very relevant today. The rule has been kept as it tends to favour larger investors who play the game of takeover and sales. Allowing other smaller shareholders more power would complicate the game, which explains why governments have kept their distance from changing these laws.
The world has moved on, and it’s only a matter of time before the predators and profiteers further manipulate the hordes of superannuation investors in the market to extract extraordinary profits.
It’s time for a closer look at shareholders' rights, together with the regulation of the market place, to discourage two-tier takeover offers - one for the well-connected and aggressive market operators and another for the other shareholders.
Michael Peters is lecturer at <a href="https://www.asb.unsw.edu.au/Pages/default.aspx" target="_blank" style="line-height: 1.3em;">Australian School of Business</a>.
This article was originally published on <a href="https://theconversation.com">The Conversation</a>.
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To protect SMSF investors the stock market needs the same safeguards property has

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Self-managed super funds have significantly outperformed their APRA-regulated rivals in six out of the past eight years, <a href="https://www.theaustralian.com.au/business/wealth/those-who-dare-to-diy-set-the-pace-on-super/story-e6frgac6-1226956597252">reports the Australian</a>.
A report from National Australia Bank shows that on average SMSFs had beaten APRA-regulated funds by 22.5% over the period, after paying all costs.
The numbers indicate a $500,000 investment in an SMSF at the start of the 2004-05 financial year would have returned $345,571 net by the end of the 2012 financial year, compared with the average APRA-regulated fund returning $190,100 net.
Recent figures from the Australian Taxation Office show SMSFs have grown by 26.5% to reach more than 1 million members.
The SMSF Professionals’ Association of Australia (SPAA) chief executive Andrea Slattery said recently: “The number of trustees and members exceeding 1 million is an important milestone for the SMSF industry, clearly demonstrating that there is a growing number of people wanting to take direct responsibility for their retirement savings”.
David Gall, executive general manager of banking and wealth solutions at NAB, told the Australian the results showed SMSFs were not a one-hit wonder.
This article first appeared on <a href="https://www.smartcompany.com.au/" target="_blank">SmartCompany</a>.
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SMSFs are a better bet than rival super funds: NAB

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The recent ASIC review of SMSF advice revealed a number of areas for improvement in the advice-giving process.
Given the risks associated with a DIY option, ASIC has issued guidelines on the things advice providers and investors should discuss and consider before setting up an SMSF.
They outline some practical tips that advice providers can use to improve the quality of SMSF advice they provide to investors.
ASIC set out a scenario as to appropriate advice when it came to a SMSF with a likely low opening balance:
An AFS licensee conducted its regular review of advice files with a focus on SMSF advice.
The licensee reviewed a file for a couple in their 40s who sought financial product advice on all aspects of their financial situation.
The SOA recommended the investors set up an SMSF by rolling over their existing superannuation balance of $87,000.
At first glance, and based on the investors’ existing superannuation balance alone, the licensee thought the advice appeared to be inappropriate.
However, a thorough review of the advice file and SOA revealed that the investors:• were both professionals, with a combined income of $700,000;
• had multiple trust and company structures established;
• in addition to their family home, had multiple investment properties, including a rural property. They also had debt relating to these investments—however, the value of investments far exceeded their level of debt;
• had lower superannuation balances than expected, given their age and income, because they were self-employed. Accordingly, the investors had not been required to make compulsory superannuation contributions and had only made irregular voluntary contributions in the past;
• had minimal levels of insurance; and
• had a cash flow surplus and were seeking advice to ensure they were making the most of all their financial opportunities.
The SOA had also recommended that the investors fully utilise their concessional contributions cap and transfer their rural property (valued at $600,000 and held in their personal names) into their SMSF.A complete review of the advice file revealed that, although the starting balance of the SMSF was low, the advice was appropriate because:
• the recommendations in the SOA ensured that the fund would quickly build to a cost-effective level;• the investors already had corporate structures and were familiar with arranging their finances in this manner; and
• the SOA covered issues such as information about product replacement, insurance, estate planning, cash flow and efficient debt management.
The licensee was able to efficiently complete its review because the advice file was easy to follow, contained a full fact find and detailed file notes, and the SOA was clear, concise and easy to read.
Commentary:
The advice was appropriate because the investors’ personal circumstances demonstrated they had experience with different assets and investment structures.
They also had the ability to build the SMSF balance quickly and ensure that the SMSF would be cost-effective for them over their lifetime.
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ASIC advice on the appropriate establishment of a low balance SMSF

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Where problems are perceived to exist with the SMSF sector, its important policy decisions are based on reality and hard facts, not ideology and hearsay.
The seemingly inexorable rise of self-managed funds is the most striking dynamic of Australia's superannuation system. More so because the rise of self-managed superannuation has been driven by the choice and determination of individuals rather than by government policy direction.
Self-managed funds are the only funds realising the vision set for Australia's superannuation system – to enable people to make themselves financially independent in retirement and avoid reliance on the age pension.
Generally SMSF members are achieving this goal while the members of the large industry and retail funds are not. The average balance in a self-managed fund account is over $500,000 compared with average account balances in industry and retail funds of less than $30,000.
The higher balances in SMSFs result from people maximising their concessional and non-concessional contributions and from the returns generated by their assets. Yet self-managed superannuation is not just for those paid higher. ATO statistics show that 66 per cent of SMSF members are on incomes of less than $80,000.
One important outcome of self-managed superannuation is enabling a generation of Australians to fund their retirement and old age within their own lifetime, instead of leaving a pension tab on the table for the next generation to pick up.
The fact that a million Australians, with more joining every day, are willing and capable of taking charge of their retirement savings, and doing a good job of it, is to be applauded.
However, it seems success breeds envy and draws criticism.
You'll hear it said that self-managed funds are driving up property values, distorting capital allocation, investing too conservatively, investing recklessly, straining the Budget, getting an unfair tax advantage and are costly to run.
We challenge each of these claims as they are often driven by ideology, or self-interest or are just plain wrong.
Take the claim that SMSFs are used to gain an unfair tax advantage.
Members of self-managed funds are subject to exactly the same tax rules as members of pooled super funds.
Critics are quick to point out the top 20% of income earners get the lion's share of super tax concessions but they don't always acknowledge that the top 20% also pay the lion's share of income tax. They get 57% of the tax concession but pay 64% of income tax. So, as you would expect, the value of their super tax break is proportionate to the amount of tax they pay, and actually a bit lower.
Or take the claim that super tax concessions are an unsustainable drain on the Budget.
Tax incentives to save for retirement are sensible policy because in the long run it's cheaper than paying out the age pension. If super tax incentives are reduced, less will be saved, fewer people will be financially independent and more will have to rely on a full or part taxpayer-funded pension.
Are SMSFs too costly to run? It's true that a relatively low account balance in a self-managed fund will cost more to administer than one held in a pooled super fund. But above around $100,000, costs are comparable or much lower. Two-thirds of self-managed funds have an operating expense ratio to assets of less than 1% and 40% have an expense ratio of less than 0.25%.
It’s not just about cost. The main reason people set up self-managed funds is to take control of their savings and more are doing so relatively early in their working lives. They make a commitment to save and as they build their assets, the relative cost of running their fund comes down. They are being helped by the emergence of a range of low-cost, online fund management service providers.
The real cost issue in superannuation is the fees charged by the large industry and retail pooled super funds, which are estimated to have consumed a quarter of these funds' returns in the past decade, a cost borne by their members.
Another common criticism of SMSFs is that they drive up property prices through highly leveraged investment. But no hard evidence is presented to back up this claim. Very low interest rates and an inadequate supply of new housing is likely fuelling property prices more. SMSFs actually put quite a small proportion of their assets into residential property – around 3.5% and this has been steady for five years. They put three times as much into commercial property, often linked to the owners' business.
Some people, on dubious advice, may be starting an SMSF to borrow to buy a residential property. Having one highly leveraged asset is clearly not a sensible strategy. To the extent that it is occurring it should be managed through better advice, credit restraint by lenders and regulation of property promoters.
In pondering the report of <a href="/expert-insights/finance/38702-property-and-smsf-murray-financial-system-inquiry-recommendations2" target="_blank">David Murray's Financial System Inquiry</a> and, in due course, the forthcoming tax white paper, the government should reflect on the singular success of self-managed funds in achieving the objectives of the superannuation system, appreciate the motivation of people who set them up and recognise the social and economic benefits they deliver.
Duncan Fairweather is executive director of the SMSF Owners' Alliance. Contact him <a href="https://www.smsfoa.org.au/contact" target="_blank">here</a>.
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Are SMSF’s causing property values to increase and receiving an unfair tax advantage? Duncan Fairweather

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ASIC has accepted an enforceable undertaking from Ascentiv Group Pty Ltd, based in Mascot, New South Wales, and its sole director, Mr Chris Pappas.
An ASIC surveillance of Ascentiv, the holder of an Australian financial services (AFS) licence, found concerns about Ascentiv's advice to clients to establish or use a self-managed superannuation fund (SMSF).
In particular, ASIC had concerns about Ascentiv's failure to:
<ul>
<li>ensure its representatives provide SMSF advice that was appropriate and in the best interests of their clients</li>
<li>adequately manage conflicts of interest</li>
<li>adequately monitor and supervise its representatives, and</li>
<li>ensure its representatives were adequately trained and competent to provide SMSF advice.</li>
</ul>
According to ASIC, surveillance also found that Ascentiv failed to provide its clients with clear and concise statements of advice. 
"Instead the statements of advice were very lengthy and difficult to understand, making it difficult for Ascentiv's clients to make informed decisions about the advice provided to them," ASIC said.
"Under the EU, Ascentiv has agreed to cancel its AFS licence and write to some of its existing clients to inform them of the EU and the clients' rights to dispute resolution."
Mr Pappas has also undertaken to:
<ul>
<li>give a copy of the EU to any AFS licensee that authorises him to provide financial services in the future;</li>
<li>complete further SMSF specialist training before becoming a representative of an AFS licensee; and</li>
<li>refrain from becoming an AFS licensee or office holder of an AFS licensee for two years.</li>
</ul>
ASIC Deputy Chairman, Peter Kell said elf-managed super funds are not appropriate for everyone. It is important that the advice provided to clients of financial advisers is appropriate for those individuals' needs and circumstances.
'ASIC further expects that AFS licensees that provide SMSF advice to adequately monitor their representatives and have processes which lead to the provision of high quality SMSF advice," he said.
"ASIC will intervene where it finds the quality of advice provided by advisers and the supervision of those advisers by the licensee to be lacking."
ASIC acknowledges Ascentiv and Mr Pappas' cooperation throughout the process.
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ASIC accepts enforceable undertaking from Ascentiv Group relating to SMSF advice 

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SPONSORED POST
Millers Point has one of the richest cultural and architectural histories in Sydney, with picturesque heritage buildings and historical landmarks.
Boasting breath-taking views, tree-lined streets and the serene tranquillity of Observatory Hill, as well as an energetic arts and cultural scene, Millers Point has something for everyone.
It’s a mere moment’s stroll to the theatres, cafes and restaurants of the Walsh Bay arts and cultural scene, the bustling shops and pubs of The Rocks, or a quick trip into Sydney’s CBD.
The doorstep of The Rocks
Framed by Sydney Harbour Bridge and Sydney Opera House, and nestled on the edge of breathtaking Sydney Harbour, The Rocks offers an unrivalled blend of the old and new.
From intimate heritage architecture and cobblestoned laneways, to stylish modern bars, some of Sydney’s finest restaurants and curious places to shop and explore.
With the MCA as one of its modern ambassadors, The Rocks is emerging as Sydney’s new cultural precinct, and has been transformed into a creative nucleus of contemporary art, festivals and evolving pop-up spaces.
The Rocks: it’s a perfect blend of culture, cuisine and experiences that are worth savouring.
For more information on Millers Point and The Rocks visit <a href="https://www.rediscovermillerspoint.com.au" target="_blank">www.rediscovermillerspoint.com.au</a>
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Millers Point – the heart of Sydney

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SPONSORED POST
Millers Point has one of the richest cultural and architectural histories in Sydney, with picturesque heritage buildings and historical landmarks.
After more than a century in public ownership, most of the Millers Point properties now being offered for sale retain a remarkable level of original and intact building fabric, form and architectural detailing and finishes. Together and individually they are a rare and potentially unique heritage resource in Australia.
All properties sold in Millers Point are accompanied by strict heritage protections; including NSW Heritage Council-endorsed Conservation Management Plans.
These contracts ensure new property owners are fully informed of their responsibilities when purchasing a heritage listed property.
They include extensive detail for purchasers on the heritage maintenance obligations and the types of works that are permitted on the properties.
For more information on the Millers Point sale program please visit <a href="https://www.rediscovermillerspoint.com.au" target="_blank">www.rediscovermillerspoint.com.au</a>
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Protecting our heritage in Millers Point

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SPONSORED POST
The NSW Government’s Millers Point sales program continues to deliver excellent results with the auction of seven properties in late 2016 for a combined $35.22million.
The sales included the highest value single property sold to date – a block of 12 one bedroom apartments on the corner of Merriman and Bettington streets, which sold for $12.3 million.
Interest in Millers Point continues to be strong, with the most recent sales recording an average rate per square metre of $19,462 (floor area), an increase of 23 per cent compared to the Millers Point sales program to date.
Other properties sold include:
<ul>
<li>15 Lower Fort Street, sold for $5.05 million.</li>
<li>36 Argyle Place, sold for $3.71 million</li>
<li>66 Bettington Street, sold for $2.42 million</li>
<li>61 Kent Street, sold for $2.11 million</li>
<li>42-44A High Street, sold for $4.81 million.</li>
<li>46-48A High Street, sold for $4.82 million.</li>
</ul>
A total of 125 Government - owned properties in Millers Point have been sold to date, with the proceeds delivering much needed social housing for the 60,000 vulnerable families and individuals on the waiting list.
For more information visit <a href="https://www.rediscovermillerspoint.com.au" target="_blank">www.rediscovermillerspoint.com.au</a>
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