Many self managed super funds have taken advantage of the 2007 concessions which allow them to borrow on a limited recourse basis to acquire fund assets.  But the rules for doing so are quite complex, and there are many risks.  This program explores the investment background, the rules themselves and how they apply in practice.

The issues canvassed in the program include:

·         Background issues – sole purpose test and investment strategy

·         Prohibition on general borrowing, acquiring assets from members and in-house assets rule

·         The limited recourse borrowing provisions explained

·         Establishing a separate vehicle to hold the asset – what kind of vehicle?

·         Ensuring the asset is not an in-house asset

·         Borrowing to acquire an asset only – no other purpose

·         Limited recourse – what does it mean?

·         Collateral security provided by associates

·         Lending by related parties

The program concludes with a series of case studies which illustrate a number of different arrangements which satisfy the requirements.