Limited Recourse Borrowing Arrangements / SMSF

Can I refinance my SMSF limited recourse borrowing?

With the growth in the use in SMSF limited recourse borrowing arrangements, we are seeing far more competitive loan products in the marketplace for fund trustees. Whilst the changes to section 67A of the SIS Act allow for refinancing of loans, it appears that many of the lenders policies haven’t changed to allow for refinancing … Continue reading »

SMSF / SMSF Strategy / Trustee education

Watch our latest video on borrowing in super

Borrowing in super has become a very popular strategy with self-managed super funds since its introduction back in September 2007.  I see more and more SMSFs using borrowing, but you need to be aware of some of the traps in using this strategy. When first introduced, superannuation borrowing was done using what was then called … Continue reading »

Professionals / SMSF / SMSF Strategy

Are limited recourse borrowings beyond repair?

Changes that took effect on 7 July 2010 for limited recourse borrowing arrangements don’t seem to have dampened the enthusiasm for people being attracted to the use of this strategy to acquire either residential or commercial property within a SMSF. These changes have however introduced a more restrictive environment in holding property, in particular for … Continue reading »

Professionals / SMSF / SMSF Strategy

What is a 'single acquirable asset' for limited recourse borrowing arrangements?

One of the key changes that took effect on 7 July 2010 for limited recourse borrowing arrangements (section 67A  of  the SIS Act), was the introduction of the terminology of a ‘single acquirable asset’. This change has had a profound impact on many of the strategies that were available under the ‘old’ section 67(4A) where the … Continue reading »

Professionals / SMSF / SMSF Strategy

Buying "off-the-plan" with limited recourse borrowing arrangements

Recent media suggests rapidly growing interest in the use of limited recourse borrowing arrangements to acquire property using a Self Managed Super Fund. One of the more common ways people are acquiring property is through “off-the-plan” (OTP) developments, whereby the SMSF signs a contract for the vendor to deliver at settlement a completed apartment. How an … Continue reading »

SMSF / SMSF Strategy / Trustee education

Video Blog – Understanding SMSF Limited Recourse Borrowing Arrangements

The latest edition to my video blogs is now available, which focuses on the topic of understanding SMSF limited recourse borrowing arrangements.  This looks at how superannuation law applies to these arrangements post 7 July 2010. You can also access further information on this topic by listening to my previously recorded webinar, “SMSF borrowing strategies“. … Continue reading »

Professionals / SMSF / SMSF Strategy

What interest rate can you charge your fund for a SMSF limited recourse loan?

It has come somewhat of a surprise to the industry regarding the Australian Taxation Office’s (ATO) view outlined in ATO ID 2010/162, which covers “limited recourse borrowing arrangements – borrowing from a related party on terms favourable to the SMSF”. It has been a long-held view since the introduction of these arrangements on 24 September … Continue reading »