This article will provide details on the functionality of SMSF Sorted's LRBA Workpaper.

A fund must have reimported the Lead Schedule after the SMSF Sorted 2.6 release (22 May 2021) for the Workpapers to be active.

For funds loaded after this date, Workpapers will automatically be available. 

The LRBA Workpaper is accessed via the Statement of Financial Position on the Limited Resource Borrowing Arrangement line item.

Clicking the WP icon will open the LRBA Workpaper

The End of Financial Year loan balance, as well as any interest paid on the loan during the year, will pre-populate based on the financial statement data that has been loaded as part of the lead schedule import.

The Total Loan Amount is to be entered manually.

Select Yes to the Related Party Loan question to display additional Workpaper fields. 

Fields are available to enter the loan details, and, where appropriate, ATO benchmark guidelines are provided for comparison purposes.

The LRBA Workpaper Related Party Loan screen also includes imported data alongside incremental interest calculations on the remaining loan balance per the loan agreement and ATO benchmarks.

These amounts can then be compared to the actual interest charged on the loan.  Totals are provided that reconcile back to the calculations made earlier in the Workpaper.

As you can see in the example below, the interest paid on the loan ($26,240) differs substantially from the loan agreement ($50,148.19) and is much lower than the ATO benchmark ($45,827.73).