Trustees purchasing property through limited recourse borrowing arrangements (LRBA) should confirm in what order key documents should be signed for that state, an SMSF legal expert says.

SMSFs looking to use an LRBA to develop property can do so, but only using a complex trust structure that requires arm’s-length arrangements.

SMSFs looking to use an intermediary LRBA must tell lenders they are using a holding trust or risk the possibility of breaching in-house asset rules.

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.