Categories | Limited recourse borrowing arrangements

SMSFs, LRBAs and NALI

By Daniel Butler on 17/02/2021 in DBA News, Investments, Limited recourse borrowing arrangements, SMSF compliance, SMSF strategy, Taxation, Trustee education

Overview When dealing with limited recourse borrowing arrangements (LRBAs), it is important to understand the consequences that may arise where the LRBA is not implemented and maintained on a proper basis. This is especially so in the case of a self managed superannuation fund (SMSF) undertaking a related party LRBA. The terms and conditions of [read more]

SMSF Lease Review Service –– COVID-19

By Daniel Butler on 20/04/2020 in Announcements, ATO, Audit, Covid, Limited recourse borrowing arrangements, SMSF compliance, SMSF strategy, Taxation

Click here to provide your instructions Introduction The COVID-19 pandemic has caused an immense amount of financial stress on tenants, especially commercial tenants who have suffered a severe downturn in their businesses. As a result, many commercial tenants are approaching their landlords demanding a rent reduction and variation to their lease. Landlords may be willing, [read more]

SMSFs and GST withholding on residential premises

By Daniel Butler on 28/10/2019 in Investments, Limited recourse borrowing arrangements, SMSF compliance, SMSF strategy, Taxation

By Daniel Butler, Director ([email protected]), DBA Lawyers Introduction The GST withholding regime (‘Withholding Regime’) was introduced on 1 July 2018 to collect GST from foreign vendors, but has much broader application. GST is typically a vendor responsibility. However, under the Withholding Regime, purchasers of certain residential property must withhold GST from the amount payable to a vendor [read more]

LRBAs — current tips and traps

By William Fettes on 25/10/2019 in Investments, Limited recourse borrowing arrangements, SMSF compliance, Taxation, Trustee education

By William Fettes, Senior Associate ([email protected]), DBA Lawyers The limited recourse borrowing arrangement (‘LRBA’) lending market has undergone a significant shift in recent years, with most first-tier bank lenders withdrawing their LRBA offerings for purchasers of residential property. As a result, several smaller second-tier lenders have emerged to fill the void created by the departure [read more]

LRBA Wind Up Documentation

By Daniel Butler on 15/10/2019 in Investments, Limited recourse borrowing arrangements, SMSF compliance, Taxation, Trustee education

By Daniel Butler, Director ([email protected]), DBA Lawyers When winding up a limited recourse borrowing arrangement (‘LRBA’), appropriate documentation is required. Broadly, an SMSF trustee has the right to acquire legal ownership of an LRBA asset (ie, from the relevant custodian/bare trustee) after the loan is fully repaid. Refer to s 67A(1)(c) of the Superannuation Industry (Supervision) Act [read more]

Penalty interest and TR 2019/2 in the context of SMSFs with LRBAs

By Daniel Butler on 05/08/2019 in ATO, Limited recourse borrowing arrangements, Taxation

Daniel Butler ([email protected]), Director, DBA Lawyers Taxation Ruling TR 2019/2 Income tax: whether penalty interest is deductible provides the Australian Taxation Office’s (‘ATO’s’) view on the deductibility of penalty interest. It replaces Taxation Ruling TR 93/7W Income tax: whether penalty interest payments are deductible, which has been withdrawn. This article highlights the relevance of TR 2019/2 for self managed superannuation [read more]

Labor’s superannuation and related proposals

By Daniel Butler on 15/02/2019 in Announcements, Contributions, Federal Budget, Limited recourse borrowing arrangements, Pensions, SMSF strategy, Statistics, Taxation

Daniel Butler, Director ([email protected]) and Shaun Backhaus, Lawyer ([email protected]) The next Federal election, according to our current Prime Minister Mr Scott Morrison, will be held in May 2019 and, if the Labor Government is elected, significant change is likely. Thus, a brief ‘stock take’ of what the superannuation landscape will look like under a Labor Government [read more]

Can a trustee be liable for a member’s tax debt?

By Shaun Backhaus on 09/02/2019 in Limited recourse borrowing arrangements, Taxation, Trustee education

Shaun Backhaus ([email protected]), Lawyer and William Fettes ([email protected]), Senior Associate, DBA Lawyers This article discusses the case of Commissioner of State Revenue v Can Barz Pty Ltd & Anor [2016] QCA 323. Broadly, this case deals with the ability of the Commissioner to recover a member’s tax debts from money that is payable to the trustee [read more]

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Total superannuation balance and limited recourse borrowing arrangements: Part 2

By Daniel Butler on 08/12/2018 in Limited recourse borrowing arrangements, SMSF strategy, Taxation, Trustee education

Daniel Butler ([email protected]), Director, DBA Lawyers Under certain circumstances, an individual member’s total superannuation balance (‘TSB’) will be increased by their share of the outstanding balance of a limited recourse borrowing arrangement (‘LRBA’) that commenced on or after 1 July 2018 when the Treasury Laws Amendment (2018 Superannuation Measures No. 1) Bill 2018 (‘Bill’) becomes [read more]

Total superannuation balance and limited recourse borrowing arrangements: Part 1

By Daniel Butler on 27/11/2018 in Limited recourse borrowing arrangements, SMSF strategy, Taxation, Trustee education

Daniel Butler, Director and Bryce Figot, Special Counsel, DBA Lawyers If the Treasury Laws Amendment (2018 Superannuation Measures No. 1) Bill 2018 (‘Bill’) becomes law, an individual member’s total superannuation balance (‘TSB’) may be increased by their share of the outstanding balance of a limited recourse borrowing arrangement (‘LRBA’) that commenced on or after 1 [read more]

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