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Direct Gearing of Super Funds: The Instalment Warrant Revolution

Published on 06 Dec 2007 | Took place at Kooyong Tennis Club, Hawthorn, VIC

Recent amendments to the SIS Act open the gateway for super fund trustees to make geared investments. Initially conceived to address problems caused by instalment warrants, the new rules permit many other direct borrowing strategies by fund trustees. Possible investments include all asset classes permissible under the SIS Act, including real estate. This represents a paradigm shift in the regulatory attitude towards the gearing of super funds. Are you ready for the instalment warrant revolution?

Individual sessions

Direct gearing of super funds: the instalment warrant revolution

Author(s):  Jeffrey CHANG

Issues covered in this paper include:

  • what an instalment warrant is and why the SIS Act was amended
  • statutory requirements for a complying loan
  • freedoms and uncertainties in the legislation
  • why you might want to gear a super fund, with a focus on SMSFs and real estate
  • when gearing would be inappropriate
  • how to implement a geared direct real estate investment.
Materials from this session: