15f Limited recourse borrowing arrangements

SMSFs that had a Limited recourse borrowing arrangement (LRBA) must complete:

• A If the fund had an LRBA, were the LRBA borrowings from a licensed financial institution?
• B Did members or related parties of the fund use personal guarantees or other security for the LRBA?
• J Limited recourse borrowing arrangements at item 15b
• V1 Borrowings for limited recourse borrowing arrangements at item 16

SMSFs are prohibited from borrowing to invest except in certain limited circumstances. For more information, see Limited recourse borrowing arrangements – questions and answers.

If the limited recourse borrowing arrangements is zero or blank at J1, J2, J3, J4, J5, J6 and J7, do not mark any checkbox at A or B item 15f. This will avoid processing delays.

A If the fund had an LRBA, were the LRBA borrowings from a licensed financial institution?

A licensed financial institution includes a bank or authorised deposit taking institutionExternal Link. Examples of licensed financial institutions include:

• Australian-owned banks
• foreign banks (branches or subsidiaries)
• credit unions
• building societies
• authorised non-operating holding companies
• finance companies.

Answer No if the fund borrowed money under the LRBA from:

• a related party of the fund
• a non-licensed financial institution.

Also answer No if the fund holds more than one LRBA, and the money to acquire at least one (or part) of an asset has been borrowed from a source other than a licensed financial institution.

B Did members or related parties of the fund use personal guarantees or other security for the LRBA?

Answer Yes if:

• a member of the fund or a related party of the fund has provided a personal guarantee or security for the LRBA
• the fund holds more than one LRBA, and a member or related party has used a personal guarantee or other security for at least one of the LRBAs.

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