SMSF Limited Recourse Borrowing for Property: Hindsight Legal AdvisersSMSF

How can an SMSF borrow money to purchase real property?

Posted on November 19, 2024Posted inSMSFTags:Limited recourse borrowing arrangement, LRBA, SIS Act, SMSF, SMSF borrowing

An SMSF is permitted to borrow funds to acquire an asset provided that the borrowing is structured as a limited recourse borrowing arrangement. This article explains the superannuation and taxation laws applicable to limited recourse borrowing arrangements entered into on or after 7 July 2010. Different rules may apply to arrangements entered into prior to that date.