Creating and protecting your wealth

SMSF Loans


How to borrow with your Self Managed Super Fund


Do you know... Changes to superannuation legislation now allow superannuation funds, specifically SMSF to borrow to purchase certain assets.


Changes to the law (a new section 67 (4A) of the SIS Act) means that SMSF can providing that certain requirements are strictly met, enter into structured and complying arrangements that facilitate the borrowing of money to acquire a permit asset.


This new and exciting Government initiative gives SMSF Trustees far more flexibility, allowing SMSFs access to many of the benefits previously available only to non superannuation investors:

SMSFs can now take advantage of this new flexibility to:
  • Generate increased member wealth through prudent borrowing arrangements 
  • Accelerate wealth creation by using external capital and the tax effective superannuation environment to fund a property purchase 
  • Separate business and personal assets to build wealth 
  • Diversify investments within a tax effective environment 
  • Access the lower Capital Gains Tax rate applicable to superannuation funds
  Furthermore SMSF members who run their own business and;
  •   own the premises/s they operate from 
  •   have the opportunity to purchase their existing business premises/s or 
  •   who may want to upgrade and move to a more suitable property

SMSF members are now able to utilise SMSFs new ability to borrow , to assist in the funding of the purchase of either their existing business real property or new business premises to bring both assets into the tax effective superannuation environment.


Also and as a consequence, SMSFs are now able to remove the uncertainty of a landlord/tenant relationship by taking control of their business premises.  Business owners can, in effect, become their own 'landlord' using their rental payments to assist in the purchase of a property beneficially owned by their SMSF.

SMSFs may also purchase residential investment property on commercial terms but cannot purchase a residential property owned by a member.

SME Financial Services is confident many SMSF Trustees will recognise the benefits that the amended legislation will provide to their members.  Being able to diversify their investment portfolios by borrowing to purchase 'business real property' is just one example of the benefits that may be obtained by SMSFs under the revised legislation.  Alternatively, being able to access the residential property on a 'commercial' basis may be another investment avenue worthy of consideration.


To take advantage of these new borrowings concessions some SMSF Trustee will need to undertake a simple upgrade of the SMSF Trust Deed - SME Corporate Services can assist in a Professional, Efficient and Timely process , for more information.

Case Study 1

In this case Peter would like his SMSF to buy an investment property and use finance to assist with the purchase, for more information...


Case Study 2

In this situation Bill wishes for his SMSF to buy a residential investment property assisted by a SMSF loan, for more information...
What is your requirement, what are you trying to achieve; for assistance please contact SME Financial Services.

SME Financial Services , a specialist finance advisory company and is committed to providing outstanding service to our customers. Integral to this commitment is the ability to provide a number of options for our customers to consider in relation to any financial need they have.



SMSF Trustees can take advantage of the complete Financing Service and Advisory Service (a one stop shop) that SME Financial Services offers.  A service that allows Trustees the flexibility to establish a borrowing arrangement that, while meeting the conditions required under subsection 67(4A) of the SIS Act, allows them a higher degree of control in terms of both structure and cost over the process.

Our unique ability to provide cost effective financing alternatives, provide financial advisory assistance and our corporate services to update and SMSF Trust Deeds, ensures that SMSF Trustees can make a decision confident in the knowledge that their needs have been assessed and comply with government requirements.

For further information as to your eligibility and to take advantage of this exciting new opportunity please contact SME Financial Services' Financing Service.


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