It has been 13 years since LRBAs were first introduced in SMSFs and they continue to be an attractive mechanism to invest more capital in the concessionally taxed superannuation environment.
The ATO’s September 2020 quarterly statistics confirm that nearly $53b of SMSF assets are owned through an LRBA.
This comprehensive Go-To Guide takes a deep dive look at LRBAs with a strong focus on the new reduced contribution caps offering an alternative way to accelerate members’ superannuation balances. It covers:
- A raft of considerations that SMSF trustees wishing to enter into an LRBA need to be aware of.
- How the superannuation and tax laws interact to ensure the loan is correctly established and maintained to avoid NALI.
- Winding up an LRBA
- Planning for the unexpected such as defaulting on the loan or the death of a member.
- General compliance issues and a range of other considerations to be factored into your understanding.
If you have difficulties accessing the quiz via the above link, please copy and paste this URL into a new browser: web.smsfassociation.com/cn/ah3t2/LRBA
At the time of publishing, the contents of this resource were accurate and correct.
Disclaimer: Technical Papers contain factual information only and are prepared without considering particular objectives, financial circumstances and needs. The information provided is not a substitute for legal, tax and financial product advice. The information contained in this document does not constitute advice given by the SMSF Association to you. If you rely on this information yourself or to provide advice to other persons, then you do so at your own risk. The SMSF Association is not licensed to provide financial product advice, legal advice or taxation advice. We recommend that you seek appropriate professional advice before relying upon the information in this technical paper. While the SMSF Association believes that the information provided is accurate, no warranty is given as to its accuracy and persons who rely on this information do so at their own risk. The information provided in this paper is not considered financial advice for the purposes of the Corporations Act 2001. © SMSF Association