64 Jolimont Street, East Melbourne VIC 3002

Accounting News

No Change to Super Fund Borrowing Rules (yet)

 

The federal government has announced it does not agree with the Financial System Inquiry’s (FS) recommendation ....

.... to prohibit limited recourse borrowing arrangements (LRBA) by superannuation funds.
 

     

 

At this time there is not enough evidence to justify a major policy change.

What was the mischief?

What is the loss of revenue, if any?

Many advisers of SMSF struggled to find any justification for this perceived problem and it seems that the Government agreed.  Therefore, trustees and financiers can continue with structures that include SMSF borrowing.

The government does recommend the monitoring of LRBAs by the Council of Financial Regulators and the Australian Taxation Office will review any risk associated with LRBAs, and report back in three years.

 

AcctWeb



W Marshall & Associates 64 Jolimont Street, East Melbourne VIC 3002

Important: This is not advice. Clients should not act solely on the basis of the material contained in this Commentary. Items herein are general comments only and do not constitute or convey advice per se. Also changes in legislation may occur quickly. We therefore recommend that our formal advice be sought before taking any action. The Commentary is issued as a helpful guide to clients and for their private information. Therefore it should be regarded as confidential and not be made available to any person without our prior approval.