Treasury Laws Amendment (Tax Reform No. 1) Act 2026 (49 of 2026)

Schedule 5   Limited recourse borrowing arrangements

Superannuation Industry (Supervision) Act 1993

2   Application of amendment

(1) The amendment made by this Schedule applies in relation to arrangements entered into on or after the commencement of this Schedule under which money is borrowed, or borrowings of money are maintained, for the acquisition of assets.

(2) However, the amendment does not apply in relation to such an arrangement to the extent that:

(a) the arrangement is for maintaining (or refinancing) a borrowing of money under another arrangement entered into before that commencement; or

(b) the acquisition of the asset (to which the borrowing under the arrangement relates) happens under an arrangement entered into before that commencement.

Note: This item means each of the following continues to be covered by the exception in subsection 67A(1) of the Superannuation Industry (Supervision) Act 1993:

(a) a borrowing arrangement entered into before commencement;

(b) a refinancing arrangement covered by paragraph (2)(a);

(c) a borrowing arrangement for which the related asset is acquired under an arrangement entered into before that commencement (even if the settlement for the acquisition of the asset happens after that commencement).