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Considering an LRBA? Jump now

Opportunity

SMSFs thinking about entering into a Limited Recourse Borrowing Arrangement (LRBA) should think about jumping in now while the “last golden opportunity” remains.

That’s according to special counsel superannuation at SUPERCentral Michael Hallinan. Noting that the government has proposed measures which will impact LRBAs entered into on or after 1 July this year.

The measures mean any member’s shares of outstanding LRBA debts will be included in the calculation of their total superannuation balance, and this could have ramifications for the member’s ability to make contributions.

“While these measures may be modified or even not enacted, clients who are currently considering entering into an LRBA may see the benefit of making the jump and, ideally settle, before 30 June 2018, to minimise the risk of being caught,” Mr Hallinan said.

“Matters will be a little more complicated for off-the-plan purchases — as there is no drawdown of the loan until the property is close to completion — which may be in one or two years' time.”

Continuing, he noted that while there is currently no exception for transactions of this type, the consultation paper does suggest transitional rules for LRBAs could be instated.

Considering an LRBA? Jump now
Opportunity
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Anonymous - Why does this get all the media attention when in reality it affects very few and the charges are minimal? How about reporting on all the ISA TPD.......
Anonymous - This got to be the smartest comment this century ?!....
nan - So what do you do if you are being ripped of and then can't afford the body corporate fees....
MarkL - The banks may not charge dead people any more ........... but they won't charge them any less either!....