Question

Limited Recourse Borrowing Arrangement (LRBA) outstanding balance can be added back to a member’s Total Super Balance (TSB) if:

• LRBA was entered on or after 1 July 2018, and either
  • the LRBA is between the fund and an associate of the fund;
  • meeting condition of release with a nil cashing restriction.

How does Class track the adjusted total super balance or record it?

Answer

1. Select the relevant financial year
2. Select the relevant member
3. Click Edit on the bottom right corner
4. Enter the amount in the Adjustment field
5. Click Submit on the bottom right corner after reviewing Total amount

The adjustment is usually positive; i.e. eroding the amount of your TSB. The adjustment needs to be reviewed and entered every subsequent financial year.

The LRBA amount is equal to the share of the outstanding balance of the LRBA on 30 June. This relates to your share of the total super interests in the SMSF that are supported by the LRBA assets.

If the fund in which you have a super interest has an affected LRBA the fund must report the outstanding LRBA amount for you in that member‘s section of the SMSF annual return.

For more information, see outstanding LRBA amount for total superannuation balance.