News

COVID-19 – Providing concessions for the LRBA in my SMSF

April 2020

The economic impacts of the COVID-19 crisis are causing significant financial distress for many businesses and individuals.

If your SMSF has a related party loan and is impacted due to the financial effects of COVID-19, you may be able to provide your LRBA with relief under an agreed commercial arrangement.

Ordinarily, not paying market interest rates in an SMSF is usually a breach of superannuation laws. However, the ATO have provided guidance which allows SMSFs with an LRBA to negotiate a reduction in or waiver of interest payments because of the financial impacts of the COVID-19.

If the repayment relief reflects similar terms to what commercial banks are currently offering for real estate investment loans as a result of COVID-19, the ATO will accept the parties are dealing at arm’s length and the NALI provisions do not apply.

What do you need to do?

Sorry, this page is reserved for members of our free community and SMSF Connect members.

Please register for a free community account to view this page or login below.

Login

If you are an existing member of SMSF Connect or the free community, please login below.

If you wish to become a member, please click here.

 


Join the free community

Provide some details below to join the free community and be regularly updated on SMSF news and information.

  • Strength indicator