Powered by MOMENTUM MEDIA
subscribe to our newsletter sign up

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

SMSF borrowing on the chopping block

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. 

Advertisement
Advertisement

“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. 

SMSF borrowing on the chopping block
chopping block
nestegg logo
subscribe to our newsletter sign up
FROM THE WEB
Recommended by Spike Native Network
Anonymous - This is all identity politics rubbish. Inasmuch as most families are dual income earners and as most women are not in high paying jobs for a variety.......
Margaret - Happy that I won't be around in 2060....
Anonymous - This "analysis" is misconceived and should get a fail in statistics. Men pay more tax because they work more. So they should get more relief. And,.......
Anonymous - I'm not sure how the ATO can declare there is an "$8.7 Billion hole" without already being able to confirm that all these claims are illegitimate?

Is.......