Question 4

Roger has identified a high-quality apartment that is excellent value. Its sale price is $2,000,000; however, Roger does not have the ready cash to purchase this apartment. He has a Self Managed Super Fund (SMSF), with assets of $1,600,000 and with a cash reserve of $400,000.

Required

Part a)

Briefly advise Roger on how his SMSF may be able to acquire the apartment.

[6 marks]

Part b)

Briefly explain how superannuation funds are regulated in Australia.