A new report shows LRBAs pose little risk to SMSFs, but sound regulation and specialist advice are crucial to their successful use. 

SMSF practitioners should be looking at the interest rates on clients’ LRBAs as many may be suitable for refinancing at lower rates.

The SMSF Association has welcomed news that LRBAs pose little risk to the superannuation system, pointing to reforms that have reduced risk.

LRBAs don’t pose risks to the super system but issues may arise at the individual SMSF level due to high assets concentrations via borrowings.

A group of government regulators has found LRBAs do not pose any significant risk to the superannuation sector.

The acquisition of properties with associated assets under an LRBA can create the need for SMSF trustees to create more than one bare trust.

An SMSF can borrow from another entity that has also borrowed money as long as each arrangement is kept separate from the other.