eureka report, page-31

evening all - interesting thread (i'm a bit late getting on as usual - bit like sdl today)

exactly correct as posted by prime and n'stalker (i sincerely hope no-one listened to the 'tax law' comments made earlier)

as trustee of an smsf, your investment decisions are constrained primarily by your investment strategy, which you determine - so if your strategy allows, you could invest 100% in an HK monaro if you wish (subject to borrowing restrictions, sole purpose test and related party matters for example)

income has little to do with it (liquidity can be an issue though if say 100% invested in non/low yielding property but that can be overcome) - remember that the fund's return is a combination of growth and yield whereas the minimum pension payable is a statutory requirement - ie if you held nothing but tol shares paying 1.5% div, the extra 2.5% required to pay the pension can simply be derived by selling down some stock

ps - you'd be unlucky if the ATO attacked a fund as 'running a business' of sharetrading

cheers

mk