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Assistant treasurer Josh Frydenberg has said the government intends to explore “the full range” of options as it assesses the Financial System Inquiry's recommendation to ban borrowing in super.
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Govt flags review of borrowing in super
23 February 2015
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7 minute read
Speaking at the SMSF Association’s national conference in Melbourne, Senator Frydenberg acknowledged that the future of borrowing in superannuation is an “important and sensitive” issue for the SMSF sector.
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“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 its 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.”
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