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Super lending

Increase your superannuation’s participation in the sharemarket through gearing.

Super Lending is a specialised gearing product designed to meet the borrowing requirements of self-managed superannuation funds. When combined with the tax-effective nature of a self-managed superannuation fund to hold and accumulate long-term savings for retirement, superannuation gearing is a powerful long-term investment strategy investors may like to consider.

Super Lending is structured to provide multiple loan accounts within the one client facility. There is a Cash Account to manage initial cash collateral and items such as dividend payments. Each loan account is secured by a separate parcel of shares purchased from a single drawdown of that loan account. Separate loans must be used to purchase shares in different companies or different classes of shares in the same company.

The current variable interest rate for Bell Potter Super Lending is:

9.80% p.a.

Last updated: 8 November 2023



Multiply your investment potential

By adding loan funds to a cash contribution from the SMSF, you can purchase a larger holding.

Dividends and franking credits

With a larger portfolio you can increase your potential to earn dividends along with associated franking credits and take advantage of any capital gains.


Investment tax effectively

Depending on your own personal tax situation a margin loan may help maximise the after tax return on your investments by: increasing your exposure to franking credits and claiming interest costs on your loan as a tax deduction (capped at the RBA’s Indicator Lending Rate for Standard Variable Housing Loans – Investor) plus 1%.



Create a more diversified portfolio by using loan funds to partly finance the purchase of shares in a range of companies.



You remain beneficial owner of the stocks in your Super Lending Facility.

The Security Trustee (BPC Custody Pty Ltd) holds shares in its name on your behalf subject to the security interest of the lender.


Limited Recourse

Our Super Lending product is limited recourse. It is still subject to margin calls (as in standard margin lending). In the event a margin call is not fully restored, the Lender has recourse to the assets held as collateral for the loan account – and not to any other assets of the SMSF, nor to other assets of the trustee.


Fall in value of portfolio

If your portfolio falls below a certain value – known as the loan-to-value ratio (LVR) – you could face a margin call. You could be required to add more collateral to your loan or to sell down stocks to cover the short call in value.

Interest rate increase

An increase in interest rates may mean that dividend receipts will cover less of the financial costs.


Laws may change and this may adversely affect your position.

Capital Protected Loans

Because Super Lending is limited recourse the ATO may regard it as a Capital Protected Loan. Information regarding the treatment of interest on capital protected loans is provided at; search for “capital protected loans”. In brief, interest deductibility where loans are regarded as Capital Protected is limited to a benchmark, being the Reserve Bank of Australia’s Indicator Lending Rate for Standard Variable Housing Loans – Investor plus 100 basis points. You should seek advice from your tax professional. The current benchmark interest rate is available in table F5 below.



Super Lending may not be suitable for every SMSF and should be used as part of a considered strategy. A Bell Potter investment Adviser can help you to work out if Super Lending is suitable for you.

As part of the application process you may need to complete a Suitability Statement, which asks questions about the position of your SMSF.

Get started

For more information about using gearing as a part of your SMSF strategy, contact 1300 023 557 or request a callback.