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  • 15f Limited recourse borrowing arrangements

    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.

    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:

    • a related party of the fund
    • a non-licensed financial institution.

    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 Liabilities.

    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.
    Last modified: 03 Oct 2019QC 58668