today's trades, page-34

1. Noellyn and Mattao, thanks for that. I absolutely stand corrected. I always thought the carve out only applied to commercial property, but you are absolutely right re s.66.

2. Not a warrant structure as such. Mattao can correct me if I am wrong (hopefully not this time), but an SMSF can borrow to acquire listed shares provided the listed shares are held on trust for the SMSF and the trustee is a different entity than the SMSF trustee. The borrowing must also be limited in recourse to the listed shares.

I have therefore set up a company with my wife. That company is the trustee of a bare trust set up to acquire EXS shares. The beneficiary of the bare trust is my SMSF. I have then lent cash on a limited recourse basis to the bare trust and it is now acquiring EXS shares. When the EXS dividend is paid, the SMSF gets the benefits of the franking credits and uses the proceeds to pay down the limited recourse loan. It can then sell the remaining shares on market if it wants and repay the rest of the loan. I effectively "split" the benefit of the franking credit as I lend at a higher rate to the SMSF than what I borrow at myself due to the limited recourse nature of the loan.

Hopefully that isn't too confusing! Please do not construe this as advice!