POWERED BY MOMENTUM MEDIA
Superannuation contributions limitations give way to gearing
Limitations around superannuation contributions have given way to gearing in SMSFs, according to the Commonwealth Bank.
Gearing now plays a greater role in the wealth creation process for trustees, according to Moghseen Jadwat, the Commonwealth Bank's head of business development for structured investments.
Jadwat said the rapidly increasing growth of the SMSF market was driving demand for protected lending.
"Employing a conservative gearing strategy under a protected loan can result in an SMSF gaining double the exposure of their super contribution," Jadwat said.
"Generally, an SMSF will get a net tax benefit from a protected loan…this is in addition to the enhanced exposure and potential returns," he added.
The bank said the growth of SMSFs could continue to the point where SMSFs may represent a bigger sector than industry super funds or retail super.
AUTHOR
Staff Writer
Money Management staff writers are writers who contribute to the website from time to time. If you would like to discuss the content contained within this article please contact us.
Recommended for you
The two funds have announced the signing of a non-binding MOU to explore a potential merger.
The board must shift its focus from managing inflation to stimulating the economy with the trimmed mean inflation figure edging closer to the 2.5 per cent target, economists have said.
ASIC chair Joe Longo says superannuation trustees must do more to protect members from misconduct and high-risk schemes.
Super fund mergers are rising, but poor planning during successor fund transfers has left members and employers exposed to serious risks.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
88.01 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
72.60 3 y p.a(%)
3
Global X GlobalX FANG+ ETF
44.24 3 y p.a(%)
4
Pengana High Conviction Equities B
40.36 3 y p.a(%)
5
Pengana High Conviction Equities A
40.34 3 y p.a(%)
