Intermediary LRBAs — legislative instrument finalised

The ATO has finalised the Superannuation Industry (Supervision) In-house Asset Determination — Intermediary Limited Recourse Borrowing Arrangement Determination 2020 following stakeholder consultation.

The instrument excludes an investment by a self-managed super fund (SMSF) in a related trust from being an in-house asset of the fund in the circumstances described in the determination. The investment in the related trust must be in connection with an intermediary limited recourse borrowing arrangement (LRBA) that complies with s 67A of the SISA. Under an intermediary LRBA, an SMSF borrows indirectly through a holding trustee to acquire a single acquirable asset. The determination will not apply where the investment would be an in-house asset if it was held directly by the fund.

The instrument commences retrospectively from 24 September 2007.