Much has been written on last year's amendment to the
superannuation laws to permit superannuation funds to borrow for
investment under specific conditions. However, the initial response
from self-managed superannuation funds (SMSFs) was cautious. This
was due to several factors including uncertainty as to the position
of the new Rudd Government and Australian Taxation Office,
investment market volatility, and perceived complexity of the
borrowing arrangement. More recently the ATO has issued
publications outlining its position, and some of the major banks
have launched their products. The position is now clearer, and the
level of interest from SMSFs and their advisers has increased. This
article examines the ATO's current views, the choices to
consider when setting up a borrowing arrangement, and some of the
remaining technical issues.
