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

Consumer protection answer to LRBA risk

The SMSF Association has reiterated its opposition to any outright ban on limited recourse borrowing arrangements (LRBAs), saying that they benefit sm...Read more

Former Financial Wisdom advisor banned by ASIC

Victorian financial advisor Anneliese Ada Willmott has been banned from providing financial services by the Australian Securities and Investments Comm...Read more

AMP acknowledges super hit

AMP Limited has acknowledged a multi-million impact resulting from passage of the Government’s new superannuation legislation.AMP has notified the A...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