News : LRBA

LRBA, SMSF, Tax

LRBA deductions limited to borrowing

LRBA deductions

An SMSF with an LRBA in place can claim deductions only for costs associated with borrowing activities and not for any expenses related to the loan’s establishment.

read more
LRBA

LRBA refinancing now a real option

SMSF LRBA refinancing

SMSFs using a related-party LRBA may look to refinance the loan arrangement on more favourable terms, but must do so with caution.

read more
Compliance, LRBA, NALI/NALE, SMSF

Dual LRBAs feasible but complex

Related-party commercial LRBA NALI ATO SIS

SMSFs can use commercial and related-party LRBAs to purchase an asset, but may struggle to get past lending criteria and the NALI safe-harbour provisions.

read more
LRBA, SMSF

Rate impact not yet seen in LRBA market

LRBA interest rates

SMSFs with related-party LRBAs have yet to respond to the rise in the safe-harbour interest rate as their peers search for better terms following successive moves by the Reserve Bank of Australia.

read more
In-house assets, LRBA, Trusts

Trusts not an ownership workaround

trusts SMSF assets

Trustees must ensure they are registering assets purchased on behalf of SMSFs in the fund’s name and refrain from using trusts as a measure to compensate for poor documentation.

read more
LRBA, Property, SMSF

LRBA interest rate pain coming

LRBA interest rate

SMSF trustees using a related-party LRBA and adhering to the PCG 2016/5 safe harbour rules will be facing a significant interest rate hike in 2023/24.

read more
LRBA

LRBAs face interest rate risks

Interest rate LRBAs

An SMSF specialist has warned fund members the recent and continuing interest rate rises will have impacts for their LRBA repayment obligations.

read more
LRBA

Rate rises fuel LRBA usage

LRBA interest rate

The increase in the use of LRBAs to buy property in an SMSF has been aided by the recent number of official interest rate rises.

read more
LRBA

LRBA offsets can create breach

LRBA offset

LRBAs with offset accounts may breach super laws if they create a charge over the fund with caution advised regarding non-bank loans.

read more
LRBA

LRBA safe harbour covers Div 7A

LRBA Division 7A

SMSFs using a Division 7A loan to fund a LRBA can meet lending requirements of tax and super law by ensuring the appropriate safe harbour rules are followed.

read more

Copyright © SMS Magazine 2025

ABN 80 159 769 034

Benchmark Media

WordPress website development by DMC Web.