The Courier-Mail

Self-managed super ban on property ‘misplaced’

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CALLS for self-managed superannua­tion funds to be barred from borrowing to buy investment property are misplaced, a peak lobby group says.

The push for the ban is based on a skewed perception of the potential fallout from a property market bust, the SelfManage­d Super Fund Associatio­n says.

Tthe Federal Government is expected to respond soon to key recommenda­tions from the Financial System Inquiry report, released late last year.

Among its recommenda­tions, the report proposes a ban on leveraging self-managed super funds to buy property – potentiall­y including commercial property – using so-called limited recourse loans. However, the associatio­n

ddt says the small rise in the number of people using nest eggs to

aal buy investment property is no cause for concern and does not justify a ban on the practice.

Associatio­n chief Andrea Slattery said the Government should avoid a ban, but adopt measures to mitigate risk for fund members wanting to gear up by requiring licensing of limited recourse loans advisers.

About 560,000 SMSFs cover nearly one million Australian­s. About 30,000 new SMSFs are set up each year.

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