SMSFs win on LRBAs

The Government has signalled it will not be moving to tighten up on self-managed superannuation funds (SMSFs) and Limited Recourse Borrowing Arrangements (LRBAs) following receipt of a report form the Council of Financial Regulators.

The report found that LRBAs form a relatively low proportion of overall SMSF assets with only around 8.9 per cent of SMSFs now having an LRBA, holding 5.2 per cent of total SMSF assets or just 1.4 per cent of total superannuation assets.

The Treasurer, Josh Frydenberg said that in light of this finding, the Government would not be making any changes to LRBAs and would instead be requesting that the Council of Financial Regulators and the Australian Taxation Office (ATO) continue to monitor the situation and report back in three years.

Frydenberg noted that the report on LRBAs was consistent with the findings of the Productivity Commission’s (PC’s) recent report on superannuation, which had found that LRBAs did not currently pose a material systemic risk.

Related Content

Receiver appointed to former OTC derivates issuer

The Australian Securities and Investments Commission (ASIC) will appoint a receiver to former OTC derivatives issuer Berndale Capital Securities, foll...Read more

Salaried workers missing out on “alarming” amounts of super

Almost one million working Australians aren’t receiving superannuation and the often-cited cause of self-employment isn’t the only driver, with ne...Read more

ANZ battles past divestments with solid half

ANZ’s decision to exit its wealth management and insurance businesses together with a tougher housing market has weighed on its half-year result, wi...Read more




Well done! That’ll be a great tale to shout from the rooftops to the left of the speaker in the house come about May 18.

Add new comment