Transactions arising from limited recourse borrowing arrangements are unlikely to trigger a transfer balance account reporting event.

Changes to LRBA regulations have opened the door to the creation of master funds with more than one borrowing arrangement.

The ATO has outlined the conditions under which it will offer administrative relief for SMSFs with LRBAs where a Division 7A loan is in place.

SMSF advisers and trustees have been warned about the complex nature of using back-to-back loans as an LRBA strategy.

Limited recourse borrowing arrangements have held their ground within the portfolios of SMSFs, but are still less than 1 per cent of all residential property assets.

A loophole that leaves intermediary LRBA loans outside of the total super balance add-back provisions has been exposed, but should not be exploited, according to an SMSF legal expert.

The six-month loan relief period provided to SMSFs by related-party lenders in line with the Australian Banking Association’s commercial loan COVID-19 relief criteria has been extended by four months.