Multiple employer SG opt-out, NALI expenses, LRBA in Total Super Balance pass Parliament

A collection of changes to superannuation – including a limited and partial Super Guarantee opt-out, and changes to NALI and LRBAs – have passed the Parliament. The Treasury Laws Amendment (2018 Superannuation Measures No. 1) Bill 2019 has passed the Parliament, without amendment. It allows some employees with multiple employers to opt-out of Super Guarantee… Continue reading Multiple employer SG opt-out, NALI expenses, LRBA in Total Super Balance pass Parliament

Great opportunities for clients in superannuation changes, SMSF conference told

There are some great advice opportunities in the recent and proposed superannuation changes, in particularly around the catch-up contribution rules. While much of the focus during the election was around Labor’s superannuation policies, with the Coalition returning to Government there are great advice opportunities in the recently legislated and proposed changes to super, an SMSF… Continue reading Great opportunities for clients in superannuation changes, SMSF conference told

LRBA safe harbour interest rates for 2019/20 up slightly

What is the SMSF Limited Recourse Borrowing Arrangement (LRBA) safe harbour interest rate for 2019/20? What is the SMSF LRBA safe harbour? How is the safe harbour interest rate set? The 2019/20 LRBA safe harbour interest rates are up slightly compared to recent years. The LRBA safe harbour interest rate for 2019/20 for real property… Continue reading LRBA safe harbour interest rates for 2019/20 up slightly

No changes to SMSFs borrowing with LRBAs, says Treasurer

The Government will not be making any changes to SMSF Limited Recourse Borrowing Arrangements (LRBAs), after receiving a report from the Council of Financial Regulators and the ATO, despite a ban being the preferred option of regulators. The Financial System Inquiry, started by the Coalition Government, recommended returning to a ban on most forms of… Continue reading No changes to SMSFs borrowing with LRBAs, says Treasurer

LRBA safe harbour interest rate for 2018/2019 financial year

The LRBA (Limited Recourse Borrowing Arrangement) interest rate for SMSFs under the ATO’s safe harbour rules for the 2018/2019 financial year, for real property, is 5.80%. For listed shares or units the interest rate is 7.80%. For the 2019/20 rates see this article: LRBA safe harbour interest rates for 2019/20 up slightly These interest rates… Continue reading LRBA safe harbour interest rate for 2018/2019 financial year

Future of SMSFs borrowing with LRBAs still unclear

The future of borrowing in SMSFs, using Limited Recourse Borrowing Arrangements (LRBAs), remains unclear but could be settled by the upcoming election. The Productivity Commission, in its recently released report into efficiency and competitiveness in the super system, said that borrowing in SMSFs is not currently a “material systemic risk”, but that “active monitoring” is… Continue reading Future of SMSFs borrowing with LRBAs still unclear

LRBAs should actually be limited recourse, says SMSF Association

The SMSF Association is calling for Limited Recourse Borrowing Arrangements (LRBAs) to be made actually limited recourse. LRBAs have been under pressure, with the big four banks and AMP having stepped away from lending to SMSFs. ASIC recently suggested LRBAs be banned, which was also a recommendation of the Financial System Inquiry. The Association is… Continue reading LRBAs should actually be limited recourse, says SMSF Association

ASIC suggests requiring minimum balance for SMSFs, banning LRBAs

ASIC has suggested requiring a minimum balance to start an SMSF, banning LRBAs, and requiring SMSF trustees to undertake education as policy options that should be considered. ASIC has been appearing before a Parliamentary Committee, which has oversight of ASIC, and was asked what policy solutions should be considered in light of recent reports by… Continue reading ASIC suggests requiring minimum balance for SMSFs, banning LRBAs

Westpac to stop new SMSF lending from 31 July 2018

Westpac is set to soon stop new lending to SMSFs. According to reports Westpac will stop new SMSF Limited Recourse Borrowing Arrangements (LRBAs) at the end of July. Westpac told ABC Radio National: “In order to simplify and streamline our self-managed super fund product we’ll be withdrawing from sale our SMSF home loan product and… Continue reading Westpac to stop new SMSF lending from 31 July 2018

Change to include LRBA in Total Super Balance has balance right

The Government has got the balance right with its changes to sometimes include Limited Recourse Borrowing Arrangements in the calculation of the Total Superannuation Balance. The Government recently put to Parliament legislation to include Limited Recourse Borrowing Arrangements (LRBAs) in the Total Super Balance, under certain circumstances. This has for some time been a goal… Continue reading Change to include LRBA in Total Super Balance has balance right