Recent amendments to the Superannuation Industry (Supervision) Act 1993 (Cth) allow super fund trustees to invest in certain geared arrangements which were previously prohibited. Initially conceived to address problems caused by ‘instalment warrants', the new rules permit many other direct borrowing strategies by fund trustees. Potential investments include all asset classes permissible under the SIS Act, including real estate. The measures represent a paradigm shift in the regulatory attitude towards the gearing of super funds.
This presentation focuses on:
the arrangements required to meet the ‘instalment warrant' borrowing carve-out
relationship with other SIS Act limitations
income tax, CGT, GST, land tax and stamp duty considerations.