The Australian Taxation Office (ATO) as part of its response to the coronavirus pandemic (COVID-19) indicated that it would not apply compliance resources for the 2019-20 and 2020-21 financial years for SMSFs that sought loan relief for LRBA related party loans. This relief applied for related party loans that complied with the safe harbour guidance…
The Australian Taxation Office (ATO) has recently updated their questions & answers section on limited recourse borrowing arrangements (LRBA) where an SMSF has sought loan repayment relief to confirm that any adjustment to the loan to capitalise interest will not amount to a replacement of the existing LRBA loan contract. Where temporary repayment relief has…
As part of the ATO’s response for SMSF trustees dealing with the coronavirus pandemic (COVID-19), it provided relief for funds with a compliant limited recourse borrowing arrangement (LRBA) that had a loan with a related party. This COVID-19 relief essentially allows for a SMSF that was complying with the ‘safe harbour’ for real property in…
Where a fund has entered into a limited recourse borrowing arrangement (LRBA) with a related party that is utilising the safe harbour set out in PCG 2016/5, the interest rate is required to stay in line with the published rate each year by the Australian Taxation Office (ATO). The rate utlised by the ATO is…
In these uncertain and difficult times due to the impact of the Coronavirus, it was fantastic to be able to gain key insights today from the Australian Taxation Office (ATO) and SMSF Association relating to a variety of measures that needed clarification for the SMSF sector to engage with and resolve a range of key…