Income Tax Assessment Act 1997



Division 307 - Key concepts relating to superannuation benefits  

Subdivision 307-D - Superannuation interests  

SECTION 307-231   Limited recourse borrowing arrangements  

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

(e) either:

(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.

Subsection 318(3) of the Income Tax Assessment Act 1936 sets out when an entity is an associate of a trustee.

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).

The amount under this subsection, in respect of a *borrowing, is worked out using the following formula:

Outstanding balance × Value of your supported super interests
Value of all supported super interests


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.

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.


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