01 August 2021 - GAP Accountants

SMSF limited recourse borrowing arrangements interest rates

The ATO has confirmed that the following interest rates charged under a limited recourse borrowing arrangement (‘LRBA’) to an SMSF would be consistent with the safe harbour terms the ATO will accept for the 2021/22 financial year.

Real property:                        5.10%
Listed shares or units:            7.10%

Note that these rates are unchanged from those the ATO accepted for the 2020/21 year.

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