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  • Consultation open on intermediary LRBA legislative instrument

    A draft legislative instrument about intermediary limited recourse borrowing arrangements (LRBAs) is now open for consultation until 13 March 2020.

    The draft legislative instrument and accompanying explanatory statement, titled Superannuation Industry (Supervision) In-house Asset Determination – Intermediary Limited Recourse Borrowing Arrangement Determination 2020 is relevant to the trustees of self-managed super funds (SMSFs) who enter into a specific type of LRBA arrangement called an intermediary LRBA.

    The arrangement covers an arrangement involving an SMSF, a holding trust, and a lender. Under the arrangement, the trustee of the holding trust borrows money as principal from a lender to acquire a single acquirable asset, but the SMSF maintains the holding trustee’s borrowing. This means the SMSF borrows indirectly through the holding trustee.

    The legislative instrument has application from 24 September 2007. To participate in the consultation, go to the legislative instrument and explanatory statement.

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      Last modified: 12 Feb 2020QC 61388