LRBAs

Labor’s proposal to tax earnings on super balances above $3 million gave the Greens the perfect opportunity to accuse SMSFs of being property centric. Pity the facts don’t support their argument.

LRBAs allow self-managed super funds to borrow money for property acquisition while protecting other assets. According to SMSF specialist Heffron, these investments offer growth opportunities, but following the rules is crucial.

The non-bank sector is comparatively small but is growing in scale and impact. For many borrowers, it’s becoming a better option than the traditional banks, writes Thinktank general manager Peter Vala.