Limited recourse borrowing arrangements (custodian and holding trusts)

A declaration of trust made by an apparent purchaser in respect of identified dutiable property where: 

• The trustee of a regulated superannuation fund (RSF) is undertaking a limited recourse loan pursuant to section 67A or 67B of the Superannuation Industry (Supervision) Act 1993;
• The acquirable asset is being held on bare trust by the custodian for the trustee of the RSF; and 
• Both the custodian and the RSF trustee are companies.
   

At the time of lodgement for duty assessment via Duties Online (DOL), the DOL user must sight the executed trust instrument by one of the following means:

• having physical possession of the original or full copy of the executed trust instrument
• having possession of a scanned full copy of the original executed trust instrument.

The declaration of trust must adhere to the following rules:

• The loan is applied for the acquisition of a single acquirable asset including expenses incurred in connection with the borrowing or acquisition.
• The acquirable asset is held on trust for the RSF trustee.
• The RSF trustee has a right to acquire legal ownership for the acquirable asset by making one or more repayments after acquisition.
• The lender’s rights are only secured against the relevant acquirable asset.

The DOL user must continue to maintain hard copy or electronic records, including a copy of the executed trust instrument and how the executed trust document was sighted.