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ARTICLE · 28 OCTOBER 2015

Superannuation borrowing: LRBAs are here to stay

Cooper Grace Ward
Cooper Grace Ward
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In reply to the Financial Systems Inquiry, the government confirmed that it will not ban SMSF limited recourse borrowing.

AustraliaFinance and Banking
Scott Hay-Bartlem
Scott Hay-Bartlem
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In December last year, the Financial Systems Inquiry (FSI) recommended removing the ability of SMSF trustees to borrow to acquire assets using limited recourse borrowing arrangements. See our legal alert on this issue ( SMSFs: Are limited recourse borrowing arrangements on borrowed time? Murray Inquiry recommends abolition!).

In its response to the FSI this week, the government confirmed that they will not ban SMSF limited recourse borrowing. This is a great result and means that SMSFs can continue to borrow with certainty that there will be no change in the law.

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