SMSF trustees and their advisers have less than a week left to re-arrange their LRBAs if they want to utilise the safe harbour LRBA terms contained in PCG 2016/5.

According to PCG 2016/5, the terms of the fund’s LRBAs will not be subject to any further compliance action by the ATO for the 2014-15 income years or before if, by 31 January 2017:

  • the LRBA is on terms that are consistent with an arm’s length dealing,

   or

  • (ii) the LRBA is brought to an end, and the payments of principal and interest are made under LRBA terms consistent with an arm’s length dealing.

The PCG 2016/5 specifies safe harbour terms that are taken by the ATO to be consistent with an arm’s length dealing. The safe harbour terms are provided for LRBAs in relation to real property and a collection of stock exchange listed shares or units.

Frequently asked questions in relation to the PCG 2016/5 are available on this link.

 


Tax & Super Australia is presenting a webinar titled “SMSF changes: Where are we now”, which will cover all the relevant superannuation changes, including changes to the contribution rules, pension changes and tax reforms. To be presented on February 8, the update will also look at:

  • the new rules commencing on July 1, 2017
  • what you need to do before then
  • the best approaches to managing fund’s compliance in the future.

Click here for more details.

SMSF trustees and their advisers have less than a week left to re-arrange their LRBAs if they want to utilise the safe harbour LRBA terms contained in PCG 2016/5.

According to PCG 2016/5, the terms of the fund’s LRBAs will not be subject to any further compliance action by the ATO for the 2014-15 income years or before if, by 31 January 2017:

the LRBA is on terms that are consistent with an arm’s length dealing,

   or

(ii) the LRBA is brought to an end, and the payments of principal and interest are made under LRBA terms consistent with an arm’s length dealing.

The PCG 2016/5 specifies safe harbour terms that are taken by the ATO to be consistent with an arm’s length dealing. The safe harbour terms are provided for LRBAs in relation to real property and a collection of stock exchange listed shares or units.

Frequently asked questions in relation to the PCG 2016/5 are available on this link.