Dangar,If you're thinking of going short in your super, it is...

Dangar,

If you're thinking of going short in your super, it is not easy. Basic rules state super funds cannot borrow, cannot take out loans. There are someways around that by creating a trust inside the trust, and it is limited to max 25% of total if memory serves me right. However, accounting and auditing fees double as there are now two trusts.

We do all our trading inside the super fund having moved everything over when little Johnny gave us the gift. You can trade "almost unlimited" within the fund. You must state in the trustee schedule that we dedicate xx% to long term, xx% to short term trading opportunities etc. We decided cost of setting up a "short trust" inside the super trust was not worth the risk. Also, if you end up non-compliant, tax penalties can be very horrendous. To each their own, but for us we decided was not very advantageous.