- Switzer Report - https://switzersuperreport.com.au -

Pressure on SMSFs moves from gearing to income

Many in the SMSF area probably think that the recent warning from David Murray in the preliminary report from the Financial System Inquiry on borrowing in SMSFs overstates the threat.

“ . . . if allowed to continue, growth in direct leverage by superannuation funds, although embryonic, may create vulnerabilities for the superannuation and financial systems,” the report said.

The gearing genie

The worries probably reflect the views of those used to the stricter regulatory approach of APRA, as distinct from the light touch of an over-worked ATO coping with half a million smaller, independent SMSFs.