The extent to which the outstanding balance of a limited recourse borrowing arrangement will affect a member’s total super balance is determined by the individual member’s circumstances, according to an SMSF service provider.

The SMSFs contacted by the ATO as part of its inquiry into fund investment strategies used an LRBA to acquire their asset or asset class, the regulator reveals.

A technical expert has raised the notion LRBAs may be the target of ATO scrutiny resulting from the letters of inquiry it recently sent out regarding SMSF investment strategies.

LRBA reporting instructions associated with the new superannuation measures bill may be self-defeating because the ATO is looking to capture too much information.

SMSFs are still able to find lenders willing to provide loans for a range of purposes, but borrowing arrangements are being closely examined by those offering the funds.