Superannuation Fund Borrowing

The following interest rates charged under a limited recourse borrowing arrangement (LRBA) would be consistent with the safe harbour terms outlined in Practical Compliance Guidelines (PCG) 2016/5 – Income tax arm’s-length terms for LRBA’s established by SMSFs.

Reserve Bank of Australia Indicator Lending Rates for banks providing standard variable housing loans for investors.

The rate published for May (the rate for the month of May immediately prior to the start of the relevant financial year).

The maximum LVR for real property is 70% and 50% for listed securities

24 September 2007 to 6 July 2010

Section 67(4A) of the SISA provided for investments in certain instalment warrants.

From 7 July 2010

Section 67A and section 67B of the SISA provide for limited recourse borrowing arrangements.