Borrowing restrictions of a Self Managed Super Fund

My wife and I are considering setting up a self managed super fund. What are the borrowing restrictions of a self managed super fund?

As a general rule, a superannuation fund must not borrow money or maintain an existing borrowing of money. Exceptions to the general rule include:

•   Temporary borrowings to pay a beneficiary - provided the period of the borrowing does not exceed 90 days and it represents less than 10% of the value of the assets of the fund;
•   Temporary borrowings to pay the surcharge - provided the period of the borrowing does not exceed 90 days and it represents less than 10% of the value of the assets of the fund; and
•   Temporary borrowings to cover settlements of securities purchases - provided the period of the borrowing does not exceed 7 days and it represents less than 10% of the value of the assets of the fund.

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