Retirement
SMSF borrowing on the chopping block
The corporate regulator has floated a ban on SMSF borrowing, in a bid to minimise the impact of dodgy operators and schemes on consumers.
SMSF borrowing on the chopping block
The corporate regulator has floated a ban on SMSF borrowing, in a bid to minimise the impact of dodgy operators and schemes on consumers.
At a parliamentary joint committee session, ASIC said considering a ban on limited recourse borrowing arrangements (LRBAs) – which facilitates SMSF borrowing – could work to protect consumers against unscrupulous operators.
For some, like director at Heffron SMSF Solutions Meg Heffron, the persistent tinkering is unfairly targeting investors who are abiding by current day law.
“I don’t think it’s unreasonable to leverage your superannuation as a valid wealth creation strategy, but I suspect the government feels it is. So to them, every LRBA that doesn’t go ahead is good news,” she said earlier this year.
“There’s plenty of reasons to attack on policy grounds – such as that [borrowing in super] potentially fuels heated housing markets. If that was being advanced as a reason, I might get it. But evidence of people blowing up their superannuation with LRBAs? I don’t believe that exists.
“If the government is going to persist with this, I wish they’d just ban it.”
ASIC’s suggestions come as all major banks exit SMSF lending, and other popular options like AMP have also called it quits in the SMSF loans market.
RELATED ARTICLES
Self managed super fund
Financial progress hinges on ambition, not income, says Stake Report
Australia faces a financial turning point, with new research from online investment platform Stake revealing a nation divided into two distinct groups: the 'Starters', who invest and feel in control ...Read more
Self managed super fund
OKX targets Australia's $1 trillion SMSF market with new crypto platform launch
In a significant move aimed at capitalising on Australia's burgeoning digital asset market, global onchain technology company OKX has unveiled a new Self-Managed Super Fund (SMSF) expansion on its ...Read more
Self managed super fund
Industry leaders launch SMSF Innovation Council to drive digital transformation
A consortium of finance industry leaders has launched an SMSF Innovation Council to help Australia's $1.02 trillion self-managed superannuation fund industry navigate digital transformation. Read more
Self managed super fund
Superannuation guarantee to be paid on government paid parental leave, says ASFA
The Association of Superannuation Funds of Australia (ASFA) has hailed the government's decision to include Superannuation Guarantee payments with its Paid Parental Leave policy as a critical step ...Read more
Self managed super fund
SMSF experts advise against hasty reactions to potential super tax changes
As the Australian Government proposes a new tax measure on superannuation earnings for balances exceeding $3 million, experts from the self-managed super funds (SMSF) sector are urging members not to ...Read more
Self managed super fund
Federal government announces changes to superannuation contribution caps
The Federal Government has announced changes to the superannuation contribution caps, impacting self-managed super funds (SMSFs) and their members from 1 July 2024. Read more
Self managed super fund
SMSF Association calls for joint effort to tackle early super access
The SMSF Association is calling on a collaborative approach including the Government, the Australian Taxation Office (ATO), the Australian Securities and Investments Commission (ASIC), and the ...Read more
Self managed super fund
Rest Super members file class action over alleged insurance premium deductions
Shine Lawyers has initiated a class action lawsuit against Rest Superannuation (Rest), alleging the unlawful deduction of income protection insurance premiums from members' superannuation accounts. Read more
Self managed super fund
Financial progress hinges on ambition, not income, says Stake Report
Australia faces a financial turning point, with new research from online investment platform Stake revealing a nation divided into two distinct groups: the 'Starters', who invest and feel in control ...Read more
Self managed super fund
OKX targets Australia's $1 trillion SMSF market with new crypto platform launch
In a significant move aimed at capitalising on Australia's burgeoning digital asset market, global onchain technology company OKX has unveiled a new Self-Managed Super Fund (SMSF) expansion on its ...Read more
Self managed super fund
Industry leaders launch SMSF Innovation Council to drive digital transformation
A consortium of finance industry leaders has launched an SMSF Innovation Council to help Australia's $1.02 trillion self-managed superannuation fund industry navigate digital transformation. Read more
Self managed super fund
Superannuation guarantee to be paid on government paid parental leave, says ASFA
The Association of Superannuation Funds of Australia (ASFA) has hailed the government's decision to include Superannuation Guarantee payments with its Paid Parental Leave policy as a critical step ...Read more
Self managed super fund
SMSF experts advise against hasty reactions to potential super tax changes
As the Australian Government proposes a new tax measure on superannuation earnings for balances exceeding $3 million, experts from the self-managed super funds (SMSF) sector are urging members not to ...Read more
Self managed super fund
Federal government announces changes to superannuation contribution caps
The Federal Government has announced changes to the superannuation contribution caps, impacting self-managed super funds (SMSFs) and their members from 1 July 2024. Read more
Self managed super fund
SMSF Association calls for joint effort to tackle early super access
The SMSF Association is calling on a collaborative approach including the Government, the Australian Taxation Office (ATO), the Australian Securities and Investments Commission (ASIC), and the ...Read more
Self managed super fund
Rest Super members file class action over alleged insurance premium deductions
Shine Lawyers has initiated a class action lawsuit against Rest Superannuation (Rest), alleging the unlawful deduction of income protection insurance premiums from members' superannuation accounts. Read more
