If you have an offset account or redraw facility attached to your SMSF home loan, it may be an important time to review with your accountant to ensure compliance with superannuation legislation.
Firstmac, a leading Australian non-bank lender and recent entrant to the SMSF lending market, has today shared advice received around offset & redraw account facilities attached to SMSF borrowings. The issue stems from SMSF offset accounts that are structured as a redraw offset facility in the loan account, within the specific context of the superannuation legislation.
According to Section 67 of the Superannuation Industry (Supervision) Act 1993 (SISA), a redraw on an SMSF loan is effectively considered to be a new loan, a new advance that requires all of the compliance checks for an advance. Where these facilities may be in place on existing SMSF loans, it is unlikely that such checks are taking place each time.
Investing in property via your superannuation is a viable option for many Australians, and we work with lenders & funders with flexible liquidity requirements and approaches to loan servicing and affordability to ensure we have as many options to consider with you.
If you are looking into property investment via your superannuation, our experienced brokers are here to assist, from the initial enquiry stage through to settlement and ongoing reviews. We work closely with your accountants and financial advisers to ensure your SMSF lending
Contributor: Alex Jacques – Director, Jacques Financial Group