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15f Limited recourse borrowing arrangements

Information on limited resource borrowing arrangements.

Last updated 6 August 2024

SMSFs that had a Limited recourse borrowing arrangement (LRBA) must complete:

  • A If the fund had an LRBA, were the LRBA borrowings from a licensed financial institution?
  • B Did members or related parties of the fund use personal guarantees or other security for the LRBA?
  • J Limited recourse borrowing arrangements at item 15b
  • V1 Borrowings for limited recourse borrowing arrangements at item 16

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

If the limited recourse borrowing arrangements is zero or blank at J1, J2, J3, J4, J5, J6 and J7, do not mark any checkbox at A or B item 15f. This will avoid processing delays.

A If the fund had an LRBA, were the LRBA borrowings from a licensed financial institution?

No

Print X in the No box. Go to B.

Yes

Print X in the Yes box. Go to B.

A licensed financial institution includes a bank or authorised deposit taking institutionExternal Link. Examples of licensed financial institutions include:

  • Australian-owned banks
  • foreign banks (branches or subsidiaries)
  • credit unions
  • building societies
  • authorised non-operating holding companies
  • finance companies.

Answer No if the fund borrowed money under the LRBA from:

Also answer No if the fund holds more than one LRBA, and the money to acquire at least one (or part) of an asset has been borrowed from a source other than a licensed financial institution.

B Did members or related parties of the fund use personal guarantees or other security for the LRBA?

No

Print X in the No box. Go to 16 Liabilities

Yes

Print X in the Yes box. Go to 16 Liabilitiesi

Answer Yes if:

  • a member of the fund or a related party of the fund has provided a personal guarantee or security for the LRBA
  • the fund holds more than one LRBA, and a member or related party has used a personal guarantee or other security for at least one of the LRBAs.

Continue to: 16 Liabilities

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