Overview
SMSFR 2009/2 is the ATO's final ruling explaining what counts as 'borrowing money' or 'maintaining an existing borrowing of money' under section 67 of the Superannuation Industry (Supervision) Act 1993. Section 67 bans self managed super fund trustees from borrowing except in specific allowed situations.
What the Ruling Says
The ruling sets out that a borrowing needs two features: a temporary transfer of money and an obligation or intention to repay it. It gives examples of arrangements that do and do not count as borrowings.
- Overdrafts and margin loans are treated as borrowings.
- Normal member contributions are not treated as borrowings.
- Expense reimbursements are not treated as borrowings.
Application
The ruling applies to income years both before and after its issue date of 8 April 2009. There is a related Compendium document, SMSFR 2009/2EC, responding to submitter feedback.
This is a finalised ATO ruling, not a draft, so it already represents the Commissioner's settled view. There is no consultation or deadline attached.
Key Actions
- If an SMSF has any borrowing arrangement, overdraft, margin loan or similar facility, check it against the ruling's definition of 'borrowing' to confirm it falls within one of the section 67 exceptions.
- Have the SMSF's approved auditor review any financing arrangements during the annual compliance audit, since non-compliance with section 67 can trigger civil and criminal penalties and risk the fund's complying status.
- If a fund has used member advances, deferred reimbursements or instalment purchase arrangements, compare these against the ruling's examples to confirm they are not treated as borrowings.
- Review the related Compendium SMSFR 2009/2EC to understand how the ATO responded to industry feedback on this ruling.
This is a plain-English summary for information only, not legal or compliance advice. Always check the official source or consult a qualified professional.