Technically Speaking: Intermediary Limited Recourse Borrowing Arrangements (LRBAs) and the Total Superannuation Balance (TSB)

Since the ATO confirmed that an investment in a related trust connected with an intermediary Limited Recourse Borrowing Arrangement (LRBA) can be complying and excluded from the in-house asset rules, there has been uncertainty relating to how an intermediary LRBA impacts on a member’s Total Superannuation Balance (TSB).

This Technically Speaking bulletin looks at:

  • What is a complying intermediary LRBA;
  • The ATO’s view on the operation of the TSB provisions;
  • How the LRBA and TSB rules interact, and;
  • The importance of managing a member’s TSB.

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

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