The Commissioner of Taxation has issued an interpretative decision this morning, ATO ID 2010/169 which deals with the question as to whether an SMSF trustee that entered into a limited recourse arrangement before 7 July 2010 can refinance that arrangement on or after that date without contravening the general borrowing prohibition in s67(1) of the Superannuation Industry (Supervision) Act 1993 (the “Act”).  Yes it can is the response, provided the money borrowed is applied for the purpose of replacing the financing arrangement for the early arrangement and the refinanced limited borrowing arrangement otherwise meets the (current) requirements of s67A of the Act and provided, finally, that the SMSF does not temporarily acquire the asset when changing to the new arrangement.