A new integrity measure that includes members’ share of LRBA borrowings in their TSB could have detrimental consequences for some, an SMSF legal firm warns.

A commercial property financier has said the problem of SMSFs being established specifically to invest in property using a limited recourse borrowing arrangement (LRBA) is showing signs of waning.

The extent to which the outstanding balance of a limited recourse borrowing arrangement will affect a member’s total super balance is determined by the individual member’s circumstances, according to an SMSF service provider.

The SMSFs contacted by the ATO as part of its inquiry into fund investment strategies used an LRBA to acquire their asset or asset class, the regulator reveals.

A technical expert has raised the notion LRBAs may be the target of ATO scrutiny resulting from the letters of inquiry it recently sent out regarding SMSF investment strategies.

LRBA reporting instructions associated with the new superannuation measures bill may be self-defeating because the ATO is looking to capture too much information.