In another example of how the system is rigged, Bill Shorten and Labor bows to his mates the Unions and the Banks with proposed changes to SMSF LRBA’s announced today

Bill Shorten and the Labor Party released today a policy titled “Positive plan to help housing affordability”.  And one of those policies was to stop SMSF’s from borrowing to buy property, through what is known as a limited recourse borrowing arrangement (LRBA).

This supposedly done on the basis that it “will prevent the unnecessary buildup of risk in Australia’s superannuation system”.

Well this is a complete lie and compounds my view that the system is rigged.

Let me explain why.
SMSF have $24 billion in LRBA property. Yes this has grown over the last 10 years, but still only represents less than 4% of all SMSF assets which are estimated to be $628 billion at December 2016 by the Australian Taxation Office.

But at the same time SMSF’s also have nearly $228 billion in listed shares and trusts.

Now my question to you.  What is more likely to happen?

LRBA property falls to by 50% costing $12 billion. Or shares fall 5% and cost SMSF’s nearly the same?

I would bet my house on there is a bigger chance in the share market falling 5% sometime in the not too distant future, than residential property in Australia falling 50%.

So how is this policy stopping LRBA’s reducing the buildup of risk in the superannuation system.

It is not, it is only being made policy by Bill Shorten and the Labor Party so they can keep their mates the Unions happy (with their Industry Superfunds) and the powerful Banks happy (with their Retail Superfunds).

Bill Shorten and the Labor Party don’t care about the average person trying to beat the rigged system and create a retirement lifestyle they deserve.  No they want to rig the system in favour of their mates.

And don’t get on the comment that SMSF’s through LRBA’s are causing the housing affordability issue.

Even if we assume all $24 billion is in residential real estate (which we know is not true), this is just 0.4% of the total Australian housing market of $6.7 trillion (yes trillion)

This is less than half of one percent.  How can half of one percent drive prices for the other 99.5% of the market?

No way.

It is just another story by Bill Shorten and the Labor Party to con the people.

I say it again, Bill Shorten and the Labor Party are only trying to rig the system in favour of their mates (or maybe it is their masters).

Do you and your family a favour and start taking steps so you can beat the rigged system and improve the health of your wealth today.

Wayne Wanders

The Wealth Navigator

wayne@thewealthnavigator.com.au