Limited recourse borrowing arrangements (LRBAs) have been greenlit by a recent enquiry, and also comments from the Assistant Treasurer.
The Council of Financial Regulators in November released its second report on Leverage and risk in the superannuation system. Consistent with the 2019 report, the Council found that LRBAs are “unlikely to pose a material risk to the superannuation system or broader financial system”. Following this, in the lead up to the recent Federal Budget, the Assistant Treasurer Steven Jones confirmed that there are no current plans to ban such arrangements. […]