Mantis Partners - Tax & Business Advisory

Confidence with clarity

A quick guide to SMSF borrowing (LRBAs) 🏠
This snapshot covers the basics: required structure, “single acquirable asset”, commercial terms/safe harbour guidance, and key do’s & don’ts when using borrowed funds.

Disclaimer: This post is general information only and doesn’t consider your objectives, financial situation, or needs. Seek professional advice before acting.

The "Unrealised Gains" Tax is Dead. But there’s a catch...
After months of industry pushback, the proposed Division 296 tax has been significantly restructured. The headline win? You won’t be taxed on asset growth until it is actually realised.
However, the reform introduces new complexity for high-net-worth balances:
1. Tiered System: A standard 15% surcharge applies to earnings on balances between 3M–10M, but balances over $10M now face an additional tier.
2. The Wait: The start date has been pushed to 1 July 2026, giving trustees more time to prepare.
The big question remaining: How exactly will "realised earnings" be defined in the draft legislation expected in early 2026? Will historical capital gains be grandfathered?.

SMSF Snapshot Sep 2025 quarter


SMSF Association