ATO issues new ruling on LRBA non-arm’s length income: TD 2016/16

The ATO has issued a new Taxation Determination, TD 2016/16, setting out when a non-arm’s length Limited Recourse Borrowing Arrangement could result in Non-Arm’s Length Income.

The ATO has also withdrawn two earlier Interpretative Decisions, ATO ID 2015/27 and

ATO extends SMSF non-arm’s length LRBA deadline

The ATO has extended the deadline for SMSFs to fix non-arm’s length income issues with LRBAs.

The ATO had previously advised SMSF trustees to review Limited Recourse Borrowing Arrangements (LRBAs) to ensure they are on an arm’s length basis by

ATO creates SMSF LRBA NALI safe harbour: PCG 2016/5

The ATO has created a safe harbour from the Non-Arm’s Length Income Rules for SMSFs with Limited Recourse Borrowing Arrangements (LRBAs), in Practical Compliance Guideline 2016/5.

Update: The ATO has given SMSFs an, extended, deadline of 31 January 2017 to

Safe harbour provision for low interest rate SMSF LRBAs

In order to remove uncertainty surrounding low, or zero, interest rate LRBAs and the non-arm’s length income rules the Government should create a safe harbour provision.

It is unclear where the idea for 0% interest rate LRBA started, through the

ATO tips to avoid misreporting LRBAs in SMSF Annual Return

With only a couple of months until all 2013/14 SMSF annual returns should be lodged the ATO has issued several “tips” to help to avoid misreporting Limited Recourse Borrowing Arrangements (LRBAs) in the SMSF Annual Return.

The ATO warns that, 

Draft look-through rules for SMSF LRBAs, instalment warrants

Update: The Tax and Superannuation Laws Amendment (2015 Measures No. 2) Bill 2015, including look-through tax treatment for SMSF LRBAs, has passed both houses of Parliament. The bill may have changed since the draft was released. Treasury has

ATO ID 2014/39, 2014/40: 0% interest LRBAs & non-arm’s length income

The ATO has issued two decisions dealing with 0% interest rate Limited Recourse Borrowing Arrangements (LRBAs) leading to non-arm’s length income, ATO ID 2014/39 and ATO ID 2014/40.

Update: the ATO has withdrawn these decisions, replacing them with ATO ID