Exception for not borrowing money

I'm aware that as a general rule a superannuation fund must not borrow money, however, are there any exceptions to the rule? Also, can I invest in installment warrants if the completion payment is not compulsory?

Yes, there are exceptions. You're allowed temporary borrowings to pay a beneficiary. In this case the period of the borrowing must not exceed 90 days and it must represent less than 10% of the value of the assets of your fund. You're also allowed temporary borrowings to cover settlements of securities purchases, however, the period of the borrowing must not be greater than seven days and it needs to represent less than 10% of the value of the assets of your fund.

The Australian Tax Office (ATO) and the Australian Prudential Regulatory Authority (APRA) have advised that investment in installment warrants via shareholder application breaches legislation. Therefore you should avoid investing in these types of warrants within your super fund.

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