SMSF LRBA Safe Harbour Interest Rates 2026–27

For the 2026–27 financial year, SMSF limited recourse borrowing arrangement (LRBA) safe harbour interest rates are expected to increase, reflecting higher benchmark lending conditions.

SMSF LRBA Safe Harbour Rates (2026–27)

• Real property: 9.35% (previously 8.95% in 2025–26)
• Listed securities: 11.95% (previously 10.95% in 2025–26)

These rates are used by SMSF trustees to ensure their related-party LRBA complies with the ATO’s safe harbour guidelines.

Why SMSF LRBA Safe Harbour Rates Matter

When an SMSF acquires assets using a related-party LRBA, the structure must reflect arm’s length commercial terms. If it does not, the arrangement may trigger the Non-Arm’s Length Income (NALI) rules, where income generated from the asset can be taxed at 45%.

ATO Compliance – PCG 2016/5 Safe Harbour

If an LRBA is structured in line with ATO Practical Compliance Guideline PCG 2016/5, the Commissioner will generally accept that:

• The LRBA is on arm’s length terms
• The arrangement is compliant with safe harbour requirements
• The SMSF is less likely to trigger NALI provisions

This provides trustees with certainty and reduces compliance risk.

How iCare Super Can Help

iCare Super assists SMSF trustees with:

• SMSF establishment and structuring
• LRBA compliance and documentation
• Related-party loan structuring
• ATO compliance support under PCG 2016/5
• Ongoing SMSF administration and reporting