subscribe to our newsletter
Govt keeping 'an open mind' on SMSF lending

Govt keeping 'an open mind' on SMSF lending

Assistant treasurer Josh Frydenberg has given insight into areas the government may be exploring as it assesses the Financial System Inquiry's recommendation to ban borrowing in super.

Speaking at the SMSF Association’s national conference in Melbourne last week, Senator Frydenberg acknowledged that the future of borrowing in superannuation is an “important and sensitive” issue for the SMSF sector.

“However, we do need to get the policy setting right and bear in mind that a valid consideration is that super is intended to generate a reliable and sustainable retirement income,” he said.

Senator Frydenberg said the government intends to consult on this recommendation with “an open mind” and added that the government’s intention is to explore “the full range” of options in this area.

“For example, should personal guarantees by self-managed super fund trustees be banned?” he said.

“Should we be doing more to improve the standards of advice given to SMSF trustees considering leveraged investments?

“These are all important issues for the industry to continue to provide government with their views.

“We will consult with all parties to ensure that we are in a position to make a fully informed decision that serves the best long-term interest of consumers and delivers a financial system which is as resilient as possible to economic and financial shocks.”

Govt keeping 'an open mind' on SMSF lending
mortgagebusiness logo

Latest News

Two lenders have announced rate changes on their home loan offerings, with rises of up to 40 basis points. ...

The major bank has announced the appointment of a new group treasurer to replace Rick Moscati, who has been embroiled in an ongoing investig...

The corporate regulator has issued guidance in relation to its oversight of a newly formed external dispute resolutions body, the Australian...

Promoted Stories

podcast

LATEST PODCAST: How the market has changed in the last 25 years, royal commission hearings, broker advocacy

Do you expect access to credit to get harder this year?