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  • V1 V2, V3 and V Borrowings

    Did the SMSF have any outstanding borrowings (where the SMSF is the borrower)?

    No

    Leave V1, V2, V3 and V blank. Go to W.

    Yes

    Read on.

    Write at V1 to V3 the total value of each type of outstanding borrowing by the SMSF (including accrued interest) on 30 June 2017.

    SMSFs are prohibited from borrowing to invest except in certain limited circumstances. For more information, see Limited recourse borrowing arrangements by self-managed superannuation funds – questions and answers.

    V1 Borrowings for limited recourse borrowing arrangements

    Did the SMSF have any outstanding borrowings held under limited recourse borrowing arrangements?

    No

    Leave V1 blank. Go to V2.

    Yes

    Read on.

    Write at V1 the value of outstanding borrowings held under all limited recourse borrowing arrangements at 30 June 2017.

    Do not include the value of the assets held under the limited recourse borrowing arrangement here. The values of the assets held on trust under limited recourse borrowing arrangements are to be included at J1 to J6 and the total at J of item 15b.

    If the SMSF reports borrowings for an LRBA at V1, it must also report at:

    • J Limited recourse borrowing arrangements in item 15b
    • A and B in item 15e.
    V2 Permissible temporary borrowings

    Did the SMSF have any permissible temporary borrowings?

    No

    Leave V2 blank. Go to V3.

    Yes

    Read on.

    Write at V2 the value (on 30 June 2017) of any permissible temporary borrowings held by the SMSF.

    Permissible temporary borrowings are those borrowings allowed under subsections 67(2), (2A) and (3) of the Superannuation Industry (Supervision) Act 1993, and include:

    • borrowing money for a maximum of 90 days to meet benefit payments due and required to be made to members, or to meet an outstanding superannuation surcharge liability (where, in either case, the SMSF would not able to make such a payment without the borrowing), provided the borrowing does not exceed 10% of the value of the SMSF's total assets
    • borrowing money for a maximum of 7 days to cover the settlement of certain security transactions (where, at the time the relevant investment decision was made, it was likely that the borrowing would not be required), provided the borrowing does not exceed 10% of the value of the SMSF's total assets.
    V3 Other borrowings

    Did the SMSF have any other outstanding borrowings?

    No

    Leave V3 blank. Go to V.

    Yes

    Read on.

    Write at V3 the value (on 30 June 2017) of all other borrowing amounts.

    V Borrowings

    Write at V the total of V1, V2 and V3.

    Example: SMSF with multiple borrowings

    At 30 June 2017, an SMSF has a beneficial interest in residential land with a market value of $300,000 held in a trust under a limited recourse borrowing arrangement.

    The outstanding amount borrowed under the limited recourse borrowing arrangement at that time is $100,000.

    The SMSF also has $5,000 in permissible temporary borrowings to meet benefit payments due to members.

    The SMSF reports:

    V1 Borrowings for limited recourse borrowing arrangements

    $100,000

    V2 Permissible temporary borrowings

    $5,000

    V3 Other outstanding borrowings

    (Blank)

    V Borrowings

    $105,000

     

    End of example

    W Total member closing account balances

    Was the SMSF wound up during 2016–17?

    No

    Write at W the total value of all member account balances on 30 June 2017.

    The amount at W must equal the total of all the S Closing account balance amounts in sections F and G.

    Yes

    • Leave W blank.
    • You must have answered Yes in Section A at 9 Was the fund wound up during the income year?
    • Go to X.

     

    If you have used a contribution reserve strategy for concessional contributions as described in TD 2013/22, then ensure that the amount you calculate and write at W includes the contributions that were received in 2016–17, even where they were not allocated to a member's account until the following financial year.

    Last modified: 19 Feb 2018QC 51269