This paper was presented by Phil Broderick on the Television Education Network Webinar held on 12 February, 2014.
The purpose of this paper is to give a broad overview of the law in relation to super fund borrowing (also referred to as limited recourse borrowing arrangements and LRBAs). After a brief review of the background to the introduction to the New Law, this paper will broadly look at the lifecycle of a LRBA.
This paper will generally confine itself to the application of the New Law, but will refer to the Old Law where relevant to the New Law. It is not a detailed review into the tax, duty and GST issues that may arise under LRBAs.
Many of the issues identified are complicated and involve detailed analysis of legal and taxation principles. In order to contain the scope of this paper, some of the issues have been raised in a general manner. A super fund trustee entering into a LRBA should ensure all issues, including those raised in this paper, are considered and dealt with in the appropriate manner.
To read the full paper you can download a PDF version here: An A to Z of Limited Recourse Borrowing Arrangements
For further information please contact Phil Broderick.