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A Macquarie Bank executive has warned of the potential for a ban on borrowing in super as a result of the ongoing Financial System Inquiry (FSI).
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Ban on borrowing in super on the table, says Macquarie
15 September 2014
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Speaking at the Chartered Accountants Australia and New Zealand national SMSF conference, Macquarie Bank executive director David Shirlow said FSI chair David Murray has given a strong indication that a ban on borrowing in super is “on the table”.
“When you get to borrowing in super [in the FSI’s interim report] the tone changes. It’s quite assertive. I think it’s quite clear that the Murray Inquiry could well recommend a complete ban on borrowing,” Mr Shirlow said.
“If the Murray Inquiry does take a firm line on borrowing, then the government could either adopt that firm line or, at the very least, I’d suggest we’re looking at some really significant constraints to address those sorts of concerns,” he added.
Mr Shirlow also addressed the FSI’s suggestion of a compulsory minimum balance for SMSF establishment saying the scenario “doesn’t have legs”.
The regulators, including ASIC, have moved to ensure that licensed practitioners are disclosing the costs and cost-effectiveness of SMSFs to potential trustees, he said.
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“I’d be surprised if the final recommendation was … a hard and fast minimum balance,” Mr Shirlow said.
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