SMSF Limited Recourse Borrowing – The Old, the New and the Controversial
Published on 27 Oct 2010
| Took place at The Mantra on Russell, Melbourne, VIC
The SIS Act rules governing borrowing by SMSFs changed on 7 July 2010 and consequently any borrowing
arrangements from that date must comply with the new rules. The new rules and the ATO’s view of their
application are set to create many issues for SMSFs and lenders alike. Meanwhile pre 7 July 2010 borrowing
arrangements will generally continue to be governed by the old rules, but may be caught by the new rules in
certain circumstances. Additionally many tax issues relating to the trust structure under an SMSF borrowing
arrangement remain unanswered.
So while SMSF borrowing is an increasingly important tool available to all SMSFs, it is also a highly technical area
that must be structured correctly.
This session examined the old and the new rules relating to SMSF borrowing. It also looked at the latest announcements in this area; including the ATO’s views on the old and the new rules and the Government's 'lookthrough'
tax treatment announcement.