CAANZ, the Chartered Accountants of Australia and New Zealand, previously know as the ICAA, have recommended a review be conducted into SMSF borrowing and argued against placing limitations on setting up SMSFs, in a second submission to the Financial System Inquiry.
“We have long supported and encouraged a review of direct borrowing by superannuation funds,” said the submission.
“We encourage the Inquiry to recommend a comprehensive review of borrowing within superannuation”
CAANZ says it is “not too late” to review the area, and rejects arguments that a review is not required due to “relatively low levels of take-up” of Limited Recourse Borrowing Arrangements (LRBAs). Instead this reflects the “timeliness of a review to determine whether borrowing is appropriate or not before it becomes widespread”.