ATO & Council of Financial Regulators report on SMSF borrowing arrangementsMarch 22, 2019

The Federal Government released, on 22 March 2019, a report completed jointly by the ATO & Council of Financial Regulators that has found that assets held by SMSF under limited recourse borrowing arrangements – LRBA – are unlikely to pose systemic risk to the financial system at this time. The report found that LRBAs form a relatively low proportion of SMSF assets overall with only around 8.9% of SMSFs having an LRBA. These arrangements hold 5.2 per cent of total SMSF assets or 1.4 per cent of total superannuation assets.

Following the release of the report the Federal Government announced that its would not be making any changes to LRBAs and will instead request that the CFR and the ATO continue to monitor LRBAs in the superannuation system and report back again in three years.

click here to view the report >>>ATO Report to Gov on Leverage and Risk in the Superannuation System 1 3 2019

Subscribe to our newsletter