Income Tax (Transitional Provisions) Act 1997



Division 307 - Key concepts relating to superannuation benefits  

SECTION 307-231   Total superannuation balance - limited recourse borrowing arrangements  

Section 307-231 of the Income Tax Assessment Act 1997 applies in relation to borrowings that arise under contracts entered into on or after 1 July 2018.

For the purposes of subsection (1), a borrowing (the new borrowing ) that arises under a contract entered into on or after 1 July 2018 is treated as if it arose under a contract entered into before 1 July 2018 if:

(a) the new borrowing is a refinancing of a borrowing (the old borrowing ) that was made under a contract:

(i) entered into before 1 July 2018; and

(ii) covered by the exception in subsection 67A(1) of the Superannuation Industry (Supervision) Act 1993 (which is about limited recourse borrowing arrangements); and

(b) the new borrowing is secured by the same asset or assets as the old borrowing; and

(c) the amount of the new borrowing at the time it is first made equals, or is less than, the outstanding balance on the old borrowing just before the refinancing.

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