The Cooper Review did not make recommendations to limit use of leverage by SMSFs but recommended that recent proposals relaxing constraints on usage be reviewed in two years. There are several reasons which, on balance it is argued, support the view that SMSFs should not be able to leverage investments, and that policy should be changed accordingly.


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This paper was prepared by Professor Kevin Davis, Research Director of the Australian Centre for Financial Studies.

The ACFS Financial Regulation Discussion Paper series provides independent analysis and commentary on current issues in financial regulation with the objective of promoting constructive dialogue among academics, industry practitioners, policymakers and regulators and contributing to excellence in Australian financial system regulation.

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