Will it be the banks (not Government) that put LRBAs to the sword?
Limited Recourse Borrowing Arrangements / SMSF

Will it be the banks (not Government) that put LRBAs to the sword?

As uncertainty remains with the direction of leverage inside superannuation, I was interested to read a recent decision by the National Australia Bank to ‘quietly’ exit the SMSF property loan space.  In recent times the Assistant Treasurer, Josh Frydenberg has indicated that limited recourse borrowing arrangements may survive, but in a revised form, with a … Continue reading »

Government’s open mind could see LRBAs survive?
Limited Recourse Borrowing Arrangements / Professionals / SMSF

Government’s open mind could see LRBAs survive?

At last week’s SMSF Association (formerly SPAA) national conference, we saw the Government respond for the first time on the Financial System’s Inquiry recommendation to ban limited recourse borrowing arrangements (LRBAs).  The Assistant Treasurer, Josh Frydenberg indicated that the Government will consult with an ‘open mind’ on what is a highly sensitive issue with the SMSF … Continue reading »

SMSF Podcast Show – Episode 11
Limited Recourse Borrowing Arrangements / Podcasts / Professionals / SMSF

SMSF Podcast Show – Episode 11

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 … Continue reading »

SMSF Webinar | The focus on SMSF borrowing
SMSF / Webinars

SMSF Webinar | The focus on SMSF borrowing

The topic of SMSF limited recourse borrowing arrangements is capturing the attention of the financial services industry and appears to a driver in the current growth of self-managed super funds. This interest certainly hasn’t gone unnoticed by the Regulators, with both Australian Securities and Investment Commission (ASIC) and Australian Taxation Office (ATO) also playing a … Continue reading »

Total hysteria with SMSF limited recourse borrowing?
Limited Recourse Borrowing Arrangements / SMSF / SMSF Compliance

Total hysteria with SMSF limited recourse borrowing?

It’s hysteria like we’ve never seen before with self-managed super funds… property investment is rampant; every man and his dog (I’m not sure the dog can be a trustee by the way) is borrowing within a SMSF to acquire property.  This is creating a housing bubble, over inflating prices in the residential property market (in … Continue reading »

Can you draw down for repairs using an LRBA?
ATO / Limited Recourse Borrowing Arrangements / Professionals / SMSF / SMSF Compliance

Can you draw down for repairs using an LRBA?

The ability to utilise borrowings to repair and maintain an asset as part of an SMSF limited recourse borrowing arrangement (LRBA) has been a key feature of the revised legislation since 7 July 2010, when section 67A & 67B were introduced. However, being able to redraw on a loan facility to make such repairs is … Continue reading »

Prevailing market conditions can pose problems in acquiring shares using LRBAs
ATO / Limited Recourse Borrowing Arrangements / Professionals / SMSF / SMSF Compliance

Prevailing market conditions can pose problems in acquiring shares using LRBAs

Whilst most of the attention with limited recourse borrowing arrangements (LRBAs) has centred around property transactions, there has been a need to clarify a range of issues on other acquirable assets, in particular assets allowable as a collection of identical assets under the definition of a single acquirable asset (SAA). It’s not uncommon when placing an … Continue reading »

ATO / Investments / Limited Recourse Borrowing Arrangements / Professionals / SMSF / SMSF Strategy / Trustee education

Alarms bells ringing with ATO around property investing in SMSFs

After only just discussing the regulatory focus by ASIC on SMSFs and property investments, we have seen further regulatory “alarm bells” ringing through the ATO’s release of taxpayer alert, TA 2012/7.  A Taxpayer Alert is an “early warning” of significant new and emerging higher risk tax and superannuation planning issues or arrangements that the ATO … Continue reading »

Limited Recourse Borrowing Arrangements / Opinion / Professionals / SMSF / SMSF Compliance

Have SMSFs become the target of property spruikers?

I read with great interest recently in the Australian newspaper, an article titled “Setting up an SMSF to buy property a risky strategy” (13 November 2012) regarding ASIC commissioners Peter Kell and Greg Tanzer focusing a taskforce on aggressive marketing of speculative property developments with SMSF limited recourse borrowing arrangements. Whilst there appears to be a lot … Continue reading »

Announcements / Limited Recourse Borrowing Arrangements / Professionals / SMSF / SMSF Strategy / Webinars

WEBINAR – SMSF limited recourse borrowing arrangements

  The topic of borrowing in super continues to gain momentum with a growing number of SMSFs looking to establish limited recourse borrowing arrangements (LRBAs) to acquire property. The next SMSF Academy webinar will discuss the latest issues impacting LRBAs including: Understanding the Commissioner’s views in the final ruling, SMSFR 2012/1: application of key concepts … Continue reading »