Historically a SMSF has been prohibited from borrowing.  Section 67 of the Superannuation Industry Supervision Act (SISA) states that '?a trustee of a regulated superannuation fund must not borrow money or maintain a borrowing??   However there are some exceptions including:

- Temporary borrowing to pay a beneficiary; and

- Temporary borrowing to cover settlement of securities transactions.

The main exemption is shown at S 67A, SISA, Limited Recourse Borrowing Arrangements (LRBA).  This allows a trustee of a regulated superannuation fund to borrow to purchase a single acquirable asset (i.e., property).