Borrow, contribute or a bit both ways?

An article by Tim Miller featured in selfmanagedsuper.

The further reductions to contribution caps in the Super Reforms mean that we need to examine alternative ways of building account balances for members of SMSFs.  This article looks at whether limited recourse borrowing will feature more predominantly moving forward.

Key takeways from the article:

  • Related party borrowing in accordance with the safe harbour guidelines may be appealing to younger SMSF members.
  • The establishment costs of LRBAs are not as prohibitive as they once were.
Tracey Besters

Access the article by clicking on the image below...