The Federal Government has done a much anticipated back flip on a longstanding ban on borrowing by a Self Managed Super Funds (SMSF). The Government recently enacted laws allowing a SMSF Trustee to borrow where it wants to acquire an asset.
Importantly the borrowing possibilities are wide, the rules are broad and with a good asset base in a SMSF the opportunities for leverage are significant.
As with all SMSF matters, great care must be taken to ensure that the borrowing strategy employed is legal, compliant with the superannuation laws, and does what everyone expects. In the coming months we will continue to update you on the development of this recent change in legislation as the market continues to explore the opportunities.
For further information on Self Managed Super Funds contact PJT to talk to our Super Specialist Renee Corkill on 07 5413 9300.