The fund manager said according to the ATO’s most recent report, at 30 June 2015 SMSFs held $13.5 billion in borrowings, representing 2.3 per cent of the total value of assets held within SMSFs.
“Despite elements of hysteria being contrived through sections of the media about gearing within SMSFs being a major contributor to the recent housing boom and the risks of using leverage in an SMSF, it remains a very minor component within SMSFs,” said Folkestone.
“The proportion of SMSFs using gearing has grown from 2.3 per cent in 2010 to 6.7 per cent in June 2014 (the ATO is yet to release the numbers for 2015).”
Whilst there has been an increase in leverage used, Folkestone said it has not been at “widespread or alarming levels”.
The not-to-be-missed Accountants Daily Strategy Day will travel through Melbourne and Sydney in August to equip accounting professionals with the latest industry updates and tips for modern practice management as well as the latest cutting-edge technology, processes, strategies and trends shaping the future of accounting. Visit the website for more information: www.accountantsdaily.com.au/strategy-day
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