Income Tax Assessment Act 1997
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.
Subsection 318(3) of the Income Tax Assessment Act 1936 sets out when an entity is an associate of a trustee.307-231(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). 307-231(3)
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|
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.
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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