Extension given to comply with the LRBA safe harbour provisions
The ATO has announced that the date for making sure LRBA related party loans comply with the new safe harbour provisions has been extended to 31st January 2017.
SMSF trustees who have a related party loan under a LRBA structure and want to rectify the current terms of the loan to the new safe harbour provisions and make any necessary payments of interest and principal for the 2015/2016 financial year have until the 31st January 2017 to do this.
Previously, SMSF Trustees had until 30th June 2016 to make sure any related party loan under a LRBA structure comply with the safe harbour provisions.
This extension has been put in place to
• Make sure SMSF Trustees ensure their related party loan are on arm’s length terms
• Give time to repay the loan or
• Give time to refinance the loan with a commercial lender.
The ATO said they would provide further examples and information to assist SMSF trustees and advisers to help them make decisions about the arrangements they need to make by 30th September 2016. We will keep an eye on this space and will communicate this when is becomes available.
For more information or guidance please contact;
Martin van der Saag
Director
T: 02 9984 7774
E: martinv@nac.com.au
Cayle Petritsch
SMSF Specialist Advisor
T: 02 9984 7774
E: caylep@nac.com.au
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