Limited Recourse Borrowing Arrangements (LRBAs) have certainly been a topical subject within the superannuation industry, with a heightened amount of media coverage and much debate over their suitability for SMSF trustees. Both the Australian Securities & Investment Commission (ASIC) and Australian Taxation Office (ATO) as Regulators have taken a greater interest in these arrangements over the past year or more, ensuring that trustees are receiving a balanced view of LRBAs, understanding key risks as much as many of the benefits available using this strategy.
In the first of what will be hopefully be a regular podcast with the Australian Taxation Office (ATO) on various SMSF issues, I am joined in this episode joined by Nathan Burgess, Director of Tax & Regulatory Risks for the SMSF Segment (ATO) to discuss the state of play with LRBAs.
In this SMSF Podcast Show, Aaron and Nathan discuss a broad range of LRBA issues, including:
- the heightened level of media coverage with LRBAs and how the ATO is risk assessing these arrangements;
- what areas are attracting the interest of the Regulator; and
- an update on the current legislative instrument (to be finalised) providing certainty around various in-house asset issues.
This podcast provides some great insights into the ATO’s current state of play on LRBAs, but more broadly evidencing a maturing SMSF sector.
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