Limited recourse borrowing arrangements

What to consider when deciding whether your SMSF can borrow under a LRBA.

If your fund borrows under a LRBA there are a number of requirements you need to comply with under the super law.

You need to consider whether the relationship between loan and lender creates any compliance issues under the super law.

You need to consider how the super law applies to the asset (or replacement asset) held on trust under the LRBA.

SMSF has an entitlement to the majority of the income from the trust.

The super law does not specify the type of trust that must be used as a holding trust in an LRBA.

Our support for SMSFs due to the financial effects of COVID-19.

Work out a member's share of the outstanding balance of a LRBA for their total superannuation balance.