Pressure to meet looming LRBA deadline
Added on by Etairos Accounting
Self-Managed Super Fund (SMSF) trustees have until January 31 this year to get their Limited Recourse Borrowing Arrangement (LRBA) on commercial terms, a deadline which was extended from June 30 2016.
Many SMSFs will be caught out by the January deadline given the tight time frames to absorb new legislation and guidance and that many trustees are not entirely across their necessary catch-up payments.
The January deadline will be the first of the new year to catch trustees out, after recent superannuation reforms were implemented. While new guidelines emerged early in 2016, many SMSFs will only now be trying to catch up on their obligations. A lot of SMSFs wouldn’t have done anything for 2016 because the guidelines came out in late April 2016 so the chances for repairing or rectifying their arrangements between April and June was not practical.
(Source: SMSF Adviser, 5 January 2017)
