Treasury Laws Amendment (2018 Superannuation Measures No. 1) Act 2019 (78 of 2019)
Schedule 3 Limited recourse borrowing arrangements
Part 1 Amendments
Income Tax Assessment Act 1997
2 At the end of Subdivision 307-D
307-231 Limited recourse borrowing arrangements
(1) You have an amount under this section (an LRBA amount ), in relation to a *regulated superannuation fund in which you have one or more *superannuation interests, if:
(a) the *superannuation provider in relation to the fund has a *borrowing under an *arrangement that is 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 borrowing has not been repaid at the time of working out your *total superannuation balance; and
(c) at that time, the asset or assets that secure the borrowing support, to an extent, a superannuation interest of yours; and
(d) the fund is covered by subsection (4) at that time; and
(i) you have satisfied (whether at or before that time) a condition of release specified in paragraph 307-80(2)(c); or
(ii) the lender is an *associate of the superannuation provider.
Note: Subsection 318(3) of the Income Tax Assessment Act 1936 sets out when an entity is an associate of a trustee.
(2) The amount of your LRBA amount in relation to the *regulated superannuation fund is the sum of the amounts worked out under subsection (3) for:
(a) if subparagraph (1)(e)(i) applies - each *borrowing that satisfies paragraphs (1)(a), (b) and (c); or
(b) if subparagraph (1)(e)(i) does not apply - each borrowing that satisfies paragraphs (1)(a), (b) and (c) and subparagraph (1)(e)(ii).
(3) The amount under this subsection, in respect of a *borrowing, is worked out using the following formula:
outstanding balance means the outstanding balance on the *borrowing at the time of working out your *total superannuation balance.
value of all supported super interests means the sum of the *values at that time of all *superannuation interests in the *regulated superannuation fund that are supported by the asset or assets that secure the *borrowing.
value of your supported super interests means the sum of the *values at that time of each *superannuation interest of yours that is supported by the asset or assets that secure the *borrowing.
(4) A *regulated superannuation fund is covered by this subsection at a time if any of the following requirements are satisfied:
(a) the fund is a *self managed superannuation fund at the time;
(b) there are less than 5 *members of the fund at the time.