LRBAs – Avoid the sting

  • Presentations, Technical Resource
  • Investment standards

National Conference 2023

LRBAs through an SMSF can be an excellent strategy for creating retirement wealth for members. However, it is crucial they are structured correctly, as not doing so can lead to an erosion of member wealth, as well as compliance headaches for trustees.
 
In this session, we’ll examine the issues for consideration regarding LRBAs with focus on:
  • Ensuring the establishment is done correctly; taking note of sequencing of documentation execution, identifying the correct participants and structuring issues
  • Understanding the rules when dealing with related parties, as both tenants and lenders including the Safe Harbour provisions
  • Winding up an arrangement, both on completion of the strategy and exiting an LRBA due to a business split or separation.

The contents of this resource are taken to be correct at the time of publication.

Disclaimer: Technical Papers contain general advice only and are prepared without taking into account particular objectives, financial circumstances and needs. The information provided is not a substitute for legal, tax and financial product advice. Before making any decision based on this information, you should assess its relevance to the individual circumstances of your client. 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 bulletin is not considered financial product advice for the purposes of the Corporations Act 2001. © SMSF Association