• NAB’s recourse against the SMSF is limited to the acquired asset held as loan security
• Maximums apply to the value of assets acquired
Contributions – No initial change to the net capital of your SMSF
• 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 (refer NAB Super Lever – Taxation Considerations).
• Both individual and corporate trustees may apply
• SMSFs with a mixture of accumulation or the pension accounts can apply
• Limited recourse loans should be managed via SMSF accumulation accounts
• The required Security Trust structure is provided within NAB Super Lever. This avoids the additional expense of setting up your own separate security trustee.
• If your facility is approved, and you decide to make an investment, you simply send us a form with your investment request and arrange to provide the required cash contribution.
• As the SMSF trustee, you can choose (1) your investment from a broad range of approved investments, (2) your preferred gearing level, (3) whether to capitalise loan interest, (4) whether to make use of non-SMSF security to support a loan via a guarantee and (5) 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.
• The facility `credit’ and `transaction’ limits are designed to create a split between the SMSF equity contributed to this gearing strategy, and the SMSF equity reserved to support other fund obligations.
As with any gearing there are risks and you should consider the offer documents for Super Lever for more information. National Australia Bank Limited (ABN 12 004 044 937 AFSL 230686) (NAB) does not provide taxation advice and the taxation information given is of a general nature only. The taxation consequences of investing will depend on your particular circumstances. NAB recommends that you should seek your own taxation and professional advice before acting on the information on this website. Any advice has been provided without considering your objectives, financial situation or needs. The NAB Super Lever Facility terms and Product Disclosure Statement (PDS) are issued by NAB and are available on this website or by calling NAB Equity Lending on 1300 135 145. You should consider the PDS before deciding to invest.