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.
