Recourse against the SMSF is limited to the acquired asset held as loan security, in addition to this maximums apply to the value of assets acquired.
Borrowing funds to acquire an asset under a limited recourse borrowing arrangement does not increase the net capital value of your SMSF, so it should not result in a contribution to your fund for ATO purposes.
Simplicity and flexibility
If you decide to make an investment, you simply send us a form with your investment request and arrange to provide the required cash contribution. Also, the required Security Trust structure is provided within NAB Super Lever.
As the SMSF trustee, you can choose:
- your investment from a broad range of approved investments
- your preferred gearing level
- whether to capitalise loan interest
- whether to make use of non-SMSF security to support a loan via a guarantee, and
- when to repay the loan.
Unconditional access to investment distributions
Cash dividends and distributions flow directly to you as the beneficial owner of the financed investment.
These income flows are available for you to reinvest within your SMSF, or you may choose to reduce an existing NAB Super Lever loan balance.