I have an SMSF that is having problems meeting its LRBA loan repayments as it is behind in its tax lodgements, become deregulation and cant receive contributions or rollovers.
At the moment the repayments are being rejected (or returned to the SMSF bank account) as the bank account falls into overdraft. This has happened on the regular basis during 2018FY, 2019FY and 2020FY. The rent doesn’t cover the monthly repayment and expenses of the property.
I believe that this is a breach of S67, S67A & B plus S82 (IHA now over 5% of net assets) and each rejected repayment is seen as a new borrowing.
Does anyone have any other opinions?