18/08/2008
The Australian Financial Review has reported that “Superannuation Industry representatives” have expressed concerns to the new Super Supremo, Senator Nick Sherry, as to the width of the recently enacted gearing exception.
It seems that the “representatives” are concerned that SMSFs may use the exception to invest, on a geared basis, and acquire assets of various classes and not simply listed securities. The report mentioned that geared investments could extend to residential and commercial real estate, cars and antiques.
Presumably Senator Sherry will consider, possibly even actively so, the expressed concerns.
Who knows whether the good senator will amend the legislation to narrow the opportunities.
SMSF trustees who are considering entering geared investments using the new exception may wish to expedite their investment proposals to lock in the exception.
If there is any tightening of the exception, it will likely, going on past experience, not be retrospective, but only limit investment thereafter.
