Special report: Leverage within superannuation
– what you must know before borrowing in your super fund

Used correctly, leverage and the use of borrowing can significantly boost the returns from investments in super funds.

However, for many years, the authorities discouraged the use of leverage in super funds which was only allowed in highly restricted circumstances.

This all changed in September 2007 when borrowing by super funds was explicitly permitted in a change to the SIS Act.

However, a number of issues arose in the operation of the new provisions and there was a further change to the legislation in July 2010.

This special report takes a look at the new legislation and the opportunities it offers to super fund investors