Limited recourse borrowing arrangements

​​​​​​​A regulated superannuation fund (RSF) is prohibited from borrowing money or maintaining a borrowing of money. In the limited circumstances where borrowing is permitted, it is referred to as a limited recourse borrowing arrangement.

Typically, limited recourse borrowing arrangements have the following characteristics: 

  • the RSF provides all funds for the purchase of the property. This can be provided from a combination of a loan from a financial institution and RSF funds;
  • a person other than the RSF trustee (the Custodian) acquires the property using funds provided by the RSF trustee, and is registered as the legal freehold owner of the property on title;  
  • the Custodian executes a declaration/acknowledgement of trust that the Custodian holds the property on a fixed trust or bare trust for the RSF;  
  • the Custodian grants the financial institution a mortgage over the property; 
  • the Custodian retains legal title to the property until the loan is fully repaid; and 
  • the p​roperty is transferred from the Custodian to the trustee of the RSF. 

Dutiable transactions

There are three transactions that are subject to duty: 

  • the initial transfer of the property to the Custodian;
  • the declaration of trust made by the Custodian, whether this occurs before or after the transfer of the p​​roperty; and 
  • the final transfer of the property from the Custodian to the trustee of the RSF.​

How to lodge

The documentation and evidence required to be submitted when lodging a transaction for assessment are​:​

​​​To submit by mail, you will need:​​

To submit via Tasmanian Revenue Online, you will need:

  • ​​​A copy of the original transfer instrument
  • copy of the agreement for sale (if applicable)​

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​Additional information

For additional information, refer to:



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