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Changes made to the Superannuation Industry Supervision Act has provided the most exciting opportunity in superannuation in many years. Superannuation funds have been given a "green light" to borrow money for investment purposes. 

This article explains the key issues to be aware of when borrowing in super.

Things to Consider

The Australian sharemarket finished the year on a positive note.  The All Ordinaries Index closed December 3.5% higher at 4,882.7 points – its highest level since September 2008. 

The Australian dollar weakened marginally in December, and is slightly below US90 cents to the dollar.

Australia's economy grew more sluggishly than expected in the third quarter as a weak trade account and retreating government stimulus dragged down overall activity. GDP rose 0.2% in the third quarter from the second quarter and rose 0.5% from a year earlier, the Australian Bureau of Statistics said.

Economists on average had expected a 0.4% rise on a quarterly basis.

Australian lawmakers approved a controversial plan to change the way employee share schemes are taxed.

The schemes proposed taxing employee share schemes when employees are granted discounts or options on shares, rather than when they vest - that is, when employees take ownership of the shares or sell them.

"With the reform to the taxation of employee share schemes, the government will better target eligibility for the tax concessions and reduce opportunities for tax avoidance," Assistant Treasurer Nick Sherry said in a statement.

The RBA raised its cash rate target by 25 basis points to 3.75%.

The latest policy tightening entrenches the RBA's position as the only central bank in the Group of 20 to be raising interest rates, with financial markets expecting more increases in early 2010 as other country's cash rates close to zero.

Australian new home sales fell 6% in October, the Housing Industry Association said.

The survey of major home builders showed its second consecutive monthly fall as the impact of government efforts to stimulate demand in the sector fade, HIA said in a statement.

Australian wages excluding bonuses rose 0.7% in the third quarter of 2009 from the second quarter and rose 3.6% from a year earlier, Australian Bureau of Statistics labour price data show.

Economists surveyed ahead of the announcement on average forecast a rise of 0.7% over the quarter and 3.6% from a year earlier.

The index measures movement in underlying wages by calculating the change in the wage and salary cost of a basket of jobs.