Awan Hammad

    Hi Pardeep

    I agree that section 67 of SIS requires that a SMSF must not borrow money. There are exceptions listed in section 67 for certain borrowings re paying for a member benefit, paying a surcharge or purchase of securities. There are also the limited recourse borrowing arrangements covered by sections 67A & 67B of SIS.

    In your example section 67 has been breached (assuming it is not a limited recourse borrowing arrangement). There are no other sections of SIS that have been breached in my view.


    The Auditors Institute


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