Individuals should think carefully about entering into a new related-party limited recourse borrowing arrangement to benefit from the COVID-19 loan relief provisions, a technical manager has warned.

The latest ATO statistics on the SMSF sector have shown a flattening of LRBA growth compared to previous years reducing concerns about risks in that market.

SMSFs may encounter complications when seeking relief from limited recourse borrowing arrangement payments relating to COVID-19 financial hardship, a technical expert has said.

Trustees are still unsure how long they will be given to repay loan relief for any limited recourse borrowing arrangements (LRBA) that have been aligned to safe harbour provisions.

SMSF LRBAs with related-party lenders can receive loan repayment relief during the coronavirus pandemic without breaching NALI rules, a technical expert says.

SMSF trustees may soon have more ways to structure limited recourse borrowing arrangements without breaching the Superannuation Industry (Supervision) Act due to a new ATO legislative instrument.

The steps SMSF trustees take after their fund has paid out a limited recourse borrowing arrangement (LRBA) is crucial for a smooth audit of their fund, an audit specialist says.