SUPER GEARING Improve the Borrowing Capacity of your Super Fund

Recent changes to the SIS Act now permit superannuation funds to invest in assets on a geared basis, thereby substantially improving the borrowing capacity of SMSFs.

The Australian Financial Review has reported that ASFA have lobbied the government to prevent SMSFs from using the exception to invest on a geared basis, in assets other than listed securities, such as residential and commercial real estate, cars and antiques, among other things.  If there is any tightening of the exception, it will, going on past experience, be on a prospective basis and not on a retrospective basis.    If you are considering entering geared investments using the new exception, you may wish to expedite any investment proposals to lock in the current exception.

The amendments to the SIS Act are somewhat intricate, so if you would like our brochure briefly outlining the provisions and structure that is needed to comply with the requirements under the legislation,  please call our Sydney office on 02 8296 6266 or email info@supercentral.com.au  and we will be happy to assist you.