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SMSF Borrowing

DescriptionStandard*Premium*
Bank Lender$1,200$2,750
Related Party Lender$1,600$3,850
* Add $100 for hard copy per arrangement.
Pricing includes GST
* For two property titles, add:
* $600 for standard bank lender documents; or
* $800 standard related party documents, and
for premium or if there are more than two titles, please contact us.
Unless documents are ordered online at https://online.dbalawyers.com.au/login an additional $50 fee applies per suite of documents.

DBA offers borrowing documents for SMSFs to purchase a single acquirable asset, including:

  • Loans from a bank or other commercial lender.
  • Loans from a related party (eg, family trust, company or members).

Limited recourse borrowing arrangements

DBA Lawyers advise on and provide documentation to implement SMSF borrowing arrangements, also known as limited recourse borrowing arrangements (‘LRBA’). When dealing with LRBAs, it is important to understand the consequences that may arise where the LRBA is not implemented or maintained on a proper basis. This is especially so in the case of an SMSF undertaking a related party LRBA.

What’s included

To find out what is included in our bank/commercial lender loans versus our related party loan document suites click here.

Premium versus standard service

Service: Description:
Premium Our premium service includes the documents outlined here in addition to our lawyers’ assisting with implementation (eg, providing assistance to the adviser/accountant acting on behalf of the trustee and liaising with the conveyancer).

Due to the complex nature of SMSF borrowings and the stamp duty, tax and super compliance issues involved in these arrangements, DBA recommends selecting the premium service where the user has no prior experience or the arrangement involves substantial value.

Standard Our standard service includes the same documents outlined here however DBA’s lawyers will need to be engaged on an hourly fee basis to provide any advice or assistance.

If you order standard and later require our advice or assistance, we would be pleased to assist, and our attendances will be invoiced at our usual hourly rates.

Related documents and consulting services

When dealing with borrowing arrangements, it is strongly recommended that SMSF trustees also consider the below documents and services. This is to ensure each borrowing arrangement is properly implemented and maintained to avoid potential contraventions of superannuation laws and significant penalties.

Documents: Description:
New Company

– Click here for more information

When an asset is acquired, it must be held on trust for the SMSF trustee for the term of the loan. DBA Lawyers recommends that a new company be used to hold legal title to the asset. This must be a separate company to the SMSF’s trustee and should have no other active duties to minimise additional taxes and duties being incurred.

DBA Lawyers can provide a new company as there are special requirements to correctly implement a bare trustee company.

SMSF Deed Update

– Click here for more information

The SMSF deed may not have adequate and up to date borrowing provisions and may need amendment. DBA Lawyers can review and update your SMSF deed if required.
New Corporate Trustee

– Click here for more information

While not mandatory, DBA Lawyers generally strongly recommends that an SMSF have a corporate trustee before entering into a borrowing arrangement or the purchase of a property. Some lenders insist on a corporate trustee before they will lend to an SMSF. DBA Lawyers can provide a new company and prepare documents to appoint a corporate trustee.
SMSF Borrowing Memo

– Click here for more information

The SMSF Borrowing Memo is a useful point of reference for advisers who wish to know more information about borrowing arrangements, have unanswered questions or who want to be better equipped to explore borrowing opportunities with their clients.

 

Services: Description:
SMSF Advice

– Click here for more information

DBA Lawyers strongly recommends that SMSF trustees and their advisers obtain advice before entering into borrowing arrangements due to the number of complexities and traps from superannuation, compliance, stamp duty and tax viewpoints.

It is also important that SMSF trustees and their advisers understand the consequences that may arise where borrowing arrangements are not implemented and maintained on a proper ongoing basis. This is especially important for SMSFs undertaking related party borrowing arrangements.

Tax Services

– Click here for more information

DBA Lawyers also strongly recommends obtaining advice on the tax implications of a borrowing arrangement as these can have significant consequences for taxes such as stamp duty, CGT and GST. Our advice focuses on:

– CGT, GST, land tax and Victorian stamp duty
– Establishment of structures, eg, trusts and companies for investing in or holding property.
– Tenants-in-common agreements.

SMSF Trustees in jurisdictions outside of Victoria should obtain advice on stamp duty, land tax and related matters from a lawyer in their own State and Territory as laws vary across jurisdictions and may impact the implementation of the borrowing arrangement.

Conveyancing Services SMSF Trustees should also engage a property lawyer or conveyancer to obtain advice on the property, mortgage and conveyancing process and criteria. We can provide a referral, if needed.

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