Speak with our SMSF Specialists for questions regarding SMSFs and SMSF borrowing.
Trustees of SMSFs are prohibited from borrowing under the Superannuation Industry (Supervision) Act 1993 (SIS Act) except when borrowing under very strict borrowing conditions called a ‘limited recourse borrowing arrangement’ (LRBA).
A limited recourse borrowing arrangement can only be used to purchase a single asset, for example a residential or commercial property. Before committing to a geared property investment you should assess whether the investment is consistent with the investment strategy and risk profile of the fund.
SMSF limited recourse borrowing arrangements that do not comply with the law can cause considerable problems for SMSFs and some trustees may not be aware of the serious consequences.
For questions relating to SMSFs and borrowing please speak with our SMSF Specialists.