Geared investments for self managed superannuation funds (SMSFs)

In brief - You can make extra contributions to your super fund by borrowing from the bank or yourself

Self managed superannuation funds have been able to borrow for investment purposes for a number of years. Increasing numbers of SMSFs are taking the opportunity to borrow to buy real property, although the ability to borrow applies equally to the purchase of other assets such as shares.

With lower contribution limits you can still in effect make additional contributions to your super fund by borrowing from the bank or from yourself.

Asset needs to be held in a separate trust for super fund if money borrowed

With legislation confirming a clear ability to borrow, the banks have offered a range of products for SMSFs that comply with the relevant legislation.