How we record Interest on Limited Recourse Borrowing Arrangements (LRBAs)

Superfund Wholesale is now Intello.

Please find the updated version of this article in the new Intello Help Centre here:




Out approach is to NOT include the interest cost of an LRBA with expenses related to the ongoing ownership of a property investment held by an SMSF.

The key reason for this is that we believe the cost of financing the purchase of the property should be differentiated from the cost of ownership (rates, insurance, strata fees etc.).

In addition this approach ensures that the interest on the LRBA is correctly recorded against the appropriate label on the SMSF Annual Return.

In the accounts of the SMSF, this categorisation is shown as follows:


And via Client View online:

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