SMSF Is Lending For The Chop! Is It True?


smsf
January 16, 2023 ( PR Submission Site )

The SMSF Association has hit back at suggestions that the government is considering changing how self-managed super funds can invest, saying any such move would be “short-sighted.”

Speculation has been mounting that the government is looking at capping how much money SMSFs can borrow to invest in property and other assets.

This comes after Treasurer Scott Morrison said last week that the government was “open-minded” about changing the rules around SMSF lending to cool down the housing market.

However, SMSF Association chief executive John Maroney says any changes to SMSF lending would be “detrimental” to those trying to save for retirement.

“Our view is that any changes to SMSF lending rules would be short-sighted and detrimental to those Australians trying to take greater control of their retirement through self-management,” Maroney said.

“SMSFs are already subject to several restrictions, including the requirement to have a minimum of $200,000 in assets before being able to borrow.”

Maroney said capping how much money SMSFs could borrow would “significantly restrict” their ability to invest in property and other growth assets.

“This would have a negative impact on retirement outcomes for many Australians,” he said.

The government is yet to make any formal announcement on changes to SMSF lending, but it is something worth keeping an eye on in the coming weeks and months.

In the meantime, if you are thinking about setting up an SMSF or are already running one, it is essential to seek professional advice to ensure you’re taking advantage of all available opportunities.

Whether or not SMSF lending is on the chopping block, the government hints that it may no longer be as favourable of an investment option. It is worth keeping an eye on this space, as changes could mean big things for how we save for retirement.

Bizfeed News Australia


Summary

The SMSF Association has hit back at suggestions that the government is considering changing how self-managed super funds can invest, saying any such move would be “short-sighted.”


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