The Government has announced that no further changes will be made to the laws surrounding limited recourse borrowing arrangements (LRBAs). This was as a result of a report by the Council of Financial Regulators (CFR) and the Australian Taxation Office (ATO) which found that assets held by self managed superannuation funds (SMSFs) under LRBAs are unlikely to pose systemic risk to the financial system at this time. Although LRBAs will continue to be monitored by CFR and the ATO.
This is to be contrasted with the Labor position which is that LRBAs be banned.
To discuss further or for more information please contact: