Increase Your Superannuation Benefits With SMSF Gearing Strategies


Leveraging through super is a strategy used by growth-focused investors to increase their superannuation balances and participate in otherwise unattainable investment opportunities.

Discover The Value Of SMSF LRBA Advice​

A Potential To Utilise Traditional Gearing Strategies To Accumulate Wealth And Generate Tax-Effective Income With Your Super.

Direct Investment Options (Equities, ETFs, Properties, Managed Funds and Non Traditional Assets)


Why SMSF Gearing?

Better After-Tax Returns

It can deliver significantly better after-tax returns compared to traditional borrowing outside super.


It is an opportunity to diversify a super portfolio and therefore reduce the overall volatility and risk on the portfolio.


The mortgage lender has no access to other assets in your SMSF (or outside of it) in the event of a default.

Reduce Contribution Tax

It can significantly reduce the contributions tax payable due to gearing losses within the fund.

Asset Protection

Asset protection from commercial and Bankruptcy Acts subject of course to anti avoidance rules.

Potential CGT Deferment

It allows you to defer any capital gains until retirement, at which stage they may become tax free (subject to legislation).

Ideas & Insights

Our Private Wealth Arm Supports Super & SMSF Investors With Strategic Gearing Ideas And Asset Allocation Services So You Can Take Charge Of Your Superannuation Investment.

Yes- it is possible to acquire a business or commercial property or assets through an SMSF. Our SMSF advisers can guide you with the best executable steps possible after we have reviewed your circumstances, objectives, and resources you have available to support your goals.
The first thing to do before you can proceed with acquiring a business or a commercial asset with your super fund is to decide whether you are to borrow or not and amend the trust deed to reflect the outcome. If the answer is to leverage, the next logical step is to amend your SMSF’s internal rules and trust deed (if necessary) to allow for borrowing.

You must ensure such transactions are done on an arm’s length basis. The mechanism used to set up an SMSF property investment including a commercial property or a business can be considered as an ‘Instalment Warrant Structure’. Where an SMSF is involved in borrowing and purchasing an asset that is then held in a trust, this structure is to govern the activities of the super fund.

Where there is borrowing involved, the SMSF will have beneficial ownership of the asset while the trust has legal ownership. Legal ownership can be transferred to the SMSF Gearing as soon as the asset is fully paid off.

SMSF trustees must first ensure their superannuation savings are managed to maximise the retirement benefit of its members. It is also the responsibility of the trustee to comply with SISA and all relevant ATO requirements in the process. The ‘Sole Purpose Test’ states that all the investment activity of the fund should be aimed at securing and providing retirement benefits for the members (or for dependants if a member dies before retirement). We provide SMSF advisory services and our specialist advisers can guide you in this process.

The need for expert advice from a qualified SMSF Gearing financial adviser can help make the process effortless for our SMSF Gearing investors. Without a qualified adviser and SMSF specialist accountant involve to carry the advice, investment and administrative burden for the trustees, the responsibility of taking on the role of trustee may be seen as a disadvantage. Being a trustee of your fund requires a considerable amount of detailed work on compliance-related tasks as well as managing and researching investments. The risk of non-compliance under SIS legislation is increased in a self-managed fund (versus a public offer or corporate fund) due to a potential lack of superannuation knowledge – hence the need for expert advice from qualified financial advisors.

In formulating an investment strategy, trustees must consider all of the fund members and the dates at which they will retire. This is crucial to ensure that the fund has sufficient liquidity to be able to fund the retirement benefits on these dates without needing to redeem investments before their recommended minimum investment timeframes. These skills, as well as being able to watch the investment markets, are not acquired easily – again underscoring the need for expert advice from qualified financial advisors.

There can be several benefits for borrowing into shares using margin loans or sometimes redrawing equity from an existing asset such as property and using it to gain exposure in a share portfolio. One upside to utilising a loan drawn against an existing asset is that there is no risk of receiving a margin call as there is third-party security introduced in this transaction. Where taking on a margin loan is possible, borrowings to acquire shares is acceptable if:

  • It is a collection of identical shares
  • In a single company or entity
  • The same market value as each other 
  • The same class (eg. Ordinary, Preference)
  • Bought at one time 
  • Disposed of as a collection, not be sold-down over time
  • additional or bonus shares can be added (such as a dividend investment plan)

Risk on borrowing to acquire shares is the possibility of receiving a margin call. This means investors must ensure there is an availability of cash to top-up cash requirements if investment decrease.

Borrowing to acquire property is possible under a limited recourse borrowing arrangement (LRBA). The SIS Act does not place restrictions on where the loan can be obtained, to acquire an asset, provided the arrangement is on commercial terms. Lenders can be a Related Party or a Commercial Institution. Expert advice is required to facilitate a seamless process and our SMSF advisers have been a great deal of help to our SMSF investors.  

Loans from a Non-related Party- non-related parties are considered to be loans from a commercial lender such as financial intuitions as in: 

  • Banks and Financial Institutions
  • Non-bank lenders
  • Property Trusts
  • Mortgage Funds
  • Other Individuals, Trusts, Companies not related to the Fund.

Ask our specialist SMSF advisers for help with your SMSF loan questions. The simple steps for a Limited recourse Borrowing Arrangement’ (LRBA) Process is: 

  • Establish an SMSF or use an existing SMSF
  • Identify the type of asset to being considered to be purchased
  • Establish a Bare Trustee
  • Establish a Bare Trust Deed
  • Documents are to be executed, approving the arrangement
  • Select the asset to be acquired

Self-managed superannuation funds (SMSFs) are often considered by investors who seek greater independence in managing their super fund. We can provide you with personal advice and also help you take on all the administrative and compliance duties at your discretion. 



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