OCTOBER 2009

Borrowing In Your Super Fund

Michael Jones, Cummings Flavel McCormack

Two years after legislative changes allowed self-managed super funds to borrow to buy assets like residential property, there's still a lot of confusion around the Do's and Don'ts. Tax specialist Michael Jones, of Cummings Flavel McCormack, says the borrowing conditions will be more stringent and interest rates higher than in other circumstances. And it's important to take care to avoid nasty stamp duty or capital gains tax surprises. Negative gearing is not appropriate, but real benefits come if the fund is in pension mode when the asset is sold.