The following interest rates charged under a limited recourse borrowing arrangement (LRBA) would be consistent with the safe harbour terms outlined in Practical Compliance Guidelines (PCG) 2016/5 – Income tax arm’s-length terms for limited recourse borrowing arrangements established by self-managed superannuation funds.
Safe Harbour Interest Rates - Real Property
2020-21 - 5.10%
2019-20 - 5.94%
2018-19 - 5.80%
2017-18 - 5.80%
2016-17 - 5.65%
Safe Harbour Interest Rates - Listed Shares or Units
2020-21 - 7.10%
2019-20 - 7.94%
2018-19 - 7.80%
2017-18 - 7.80%
2016-17 - 7.65%
These rates are based on the Reserve Bank of Australia (RBA) Indicator Lending Rates for banks providing standard variable housing loans for investors (refer to table F5) – this rate is determined for the following financial year (from 1 July) based upon the published rate in May each year.
More information
#annualfees