V1 V2, V3 and V Borrowings
Did the SMSF have any outstanding borrowings (where the SMSF is the borrower)?
|
No |
Leave V1, V2, V3 and V blank. Go to W. |
|---|---|
|
Yes |
Read on. |
Write at V1 to V3 the total value of each type of outstanding borrowing by the SMSF (including accrued interest) on 30 June 2019.
SMSFs are prohibited from borrowing to invest except in certain limited circumstances. For more information, see Limited recourse borrowing arrangements – questions and answers.
V1 Borrowings for limited recourse borrowing arrangements
Did the SMSF have any outstanding borrowings held under limited recourse borrowing arrangements?
|
No |
Leave V1 blank. Go to V2. |
|---|---|
|
Yes |
Read on. |
Write at V1 the value of outstanding borrowings held under all limited recourse borrowing arrangements at 30 June 2019.
Do not include the value of the assets held under the limited recourse borrowing arrangement here. The values of the assets held on trust under limited recourse borrowing arrangements are to be included at J1 to J6 and the total at J of item 15b.
If the SMSF reports borrowings for an LRBA at V1, it must also report at:
- J Limited recourse borrowing arrangements at item 15b
- A and B at item 15f.
V2 Permissible temporary borrowings
Did the SMSF have any permissible temporary borrowings?
|
No |
Leave V2 blank. Go to V3. |
|---|---|
|
Yes |
Read on. |
Write at V2 the value (on 30 June 2019) of any permissible temporary borrowings held by the SMSF.
Permissible temporary borrowings are those borrowings allowed under subsections 67(2), (2A) and (3) of the Superannuation Industry (Supervision) Act 1993, and include:
- borrowing money for a maximum of 90 days to meet benefit payments due and required to be made to members, or to meet an outstanding superannuation surcharge liability (where, in either case, the SMSF would not able to make such a payment without the borrowing), provided the borrowing does not exceed 10% of the value of the SMSF's total assets
- borrowing money for a maximum of 7 days to cover the settlement of certain security transactions (where, at the time the relevant investment decision was made, it was likely that the borrowing would not be required), provided the borrowing does not exceed 10% of the value of the SMSF's total assets.
V3 Other borrowings
Did the SMSF have any other outstanding borrowings?
|
No |
Leave V3 blank. Go to V. |
|---|---|
|
Yes |
Read on. |
Write at V3 the value (on 30 June 2019) of all other borrowing amounts.
V Borrowings
Write at V the total of V1, V2 and V3.
Example: SMSF with multiple borrowings
At 30 June 2019, an SMSF has a beneficial interest in residential land with a market value of $300,000 held in a trust under a limited recourse borrowing arrangement.
The outstanding amount borrowed under the limited recourse borrowing arrangement at that time is $100,000.
The SMSF also has $5,000 in permissible temporary borrowings to meet benefit payments due to members.
The SMSF reports:
|
V1 Borrowings for limited recourse borrowing arrangements |
$100,000 |
|
V2 Permissible temporary borrowings |
$5,000 |
|
V3 Other outstanding borrowings |
(Blank) |
|
V Borrowings |
$105,000 |
End of example
W Total member closing account balances
Was the SMSF wound up during 2018–19?
|
No |
Write at W the total value of all member account balances on 30 June 2019. The amount at W must equal the total of all the S Closing account balance amounts in sections F and G. |
|---|---|
|
Yes |
Leave W blank. You must have answered Yes in section A at 9 Was the fund wound up during the income year? Go to X. |
If you have used a contribution reserve strategy for concessional contributions as described in TD 2013/22, then ensure that the amount you calculate and write at W includes the contributions that were received in 2018–19, even where they were not allocated to a member's account until the following financial year.
X Reserve accounts
Did the SMSF have any assets not allocated to members on 30 June 2019?
|
No |
Leave X blank. Go to Y. |
|---|---|
|
Yes |
Read on. |
Write at X the total value of assets not allocated to members on 30 June 2019.
The use of reserve accounts is strictly limited for SMSFs. For more information see, SMSF Regulator's Bulletin 2018/1 The use of reserves by self-managed superannuation funds.
Y Other liabilities
Did the SMSF have other liabilities?
|
No |
Leave Y blank. Go to Z. |
|---|---|
|
Yes |
Read on. |
Write at Y the total value (on 30 June 2019) of liabilities that you could not include in:
- V Borrowings
- W Total member closing account balances
- X Reserve accounts.
Z Total liabilities
Work out the SMSF's total liabilities at 30 June 2019. Add up all the liabilities at V to Y. Write the total at Z.
If the SMSF was wound up during 2018–19 (that is, it has no liabilities), write 0 at Z.
Z Total liabilities must equal U Total Australian and overseas assets in 15c.
Continue to: Section I: Taxation of financial arrangements