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

Has the Govt eroded incentives for super saving?

The Government’s changes to superannuation have gone too far and there are no incentives left in the system to attract taxpayers to save about the c...Read more

ASIC spotlights industry fund vertical integration

The Australian Securities and Investments Commission (ASIC) has drawn a direct commercial link between Industry Fund Services (IFS) and the industry s...Read more

Industry identifies glitches in Govt’s super legislation

The Federal Government has been warned that superannuation fund members risk being treated unequally because of the speed with which it has proceeded ...Read more

Author

Comments

Comments

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