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.

Some trustees with LRBAs may need to rethink their usual strategy in order to comply with the changes to TSB calculations, an SMSF technical expert says.