Super Fund Borrowing is here to stay

by Michael Garrone Published

Super fund borrowing is here to stay for another three years.

The government has now announced that they don’t agree with a ban on borrowing and won’t legislate the Financial System Inquiry recommendation of 2014. http://www.treasury.gov.au/fsi .

No other changes have been announced where borrowing is concerned.

This might also mean that changes that have been anticipated around banning residential borrowing, reducing loan to value ratio’s or removal of personal guarantees are no longer on the table.

Over recent times we have seen banks exit SMSF borrowing for residential properties, tighten up their lending criteria and increasing interest rates. It has also been a good thing to see the market get a bit savvier and realise borrowing isn’t for everyone.

In the right circumstances borrowing in SMSF can be a viable strategy.

Let’s all hope that the next three years see sensible lending in the SMSF space!

If you have any questions about borrowing and how it could impact you specifically, feel free to give one of our Super gurus a call on 07 3193 3000, or email one of the team members here.

Michael Garrone
read more by Michael Garrone

Michael is our Tax Specialist Director as well as the head of our business advisory niches of Building and Construction and Property.

With Michael's extensive experience and a real interest in these niche areas he is able to provide practical business and tax advice that is unique to the Building and Construction and Property industries. His tailored advice helps guide these businesses through start-up phase to succession and sale. Michael has many years’ experience in solving complex problems involving corporate tax, restructures, international taxation, Capital Gains Tax and GST. 

Michael also has a strong background in self-managed superannuation and is an authorised representative of superannuationDEPOT. In this area Michael provides strategic advice on SMSF structures and in particular limited recourse borrowing arrangements. Through this diverse experience Michael has developed expertise within a wide range of industries including building and construction, property, professional services (legal, engineering & finance), technology and software and manufacturing.

Michael Garrone is an authorised representative [No. 1240832] of Hunter Green Pty Ltd AFSL 225962. Your Adviser may offer you services through Depot Superannuation Pty Ltd which is a separate business. Although the same Adviser may offer you services under the above businesses, each business is solely and separately responsible for the advice they each provide. In particular, Hunter Green is only responsible for the financial planning services provided by Michael Garrone.

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