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Key borrowing deadline extended for super

The deadline has been extended for those SMSF trustees looking to restructure their loans in light of the ATO’s new borrowing guidance.

SMSF trustees are now expected to have their limited recourse borrowing arrangements (LRBAs) on commercial terms by 31 January 2017. This deadline was originally set at 30 June this year.

The ATO released Practical Compliance Guideline 2016/5 in early April, which provides terms on which SMSF trustees may structure their loans to ensure their loans are structured compliantly.

However, since the release of the guidelines, the ATO has received several requests for an extension.

"Consideration of these individual requests has highlighted that many taxpayers may require more time in order to review the terms of LRBAs," the ATO stated.

By the end of September this year, the ATO committed to providing further information and "illustrative examples" to assist SMSF trustees to make decisions about their arrangements.

Now, the ATO will not select an SMSF for an income tax review purely because it has an LRBA for the 2014-15 income years and prior, provided that the SMSF trustee ensures that any LRBAs that their fund has is on commercial terms, or is alternatively brought to an end by 31 January 2017.

Further, payments of principal and interest for the year ended 30 June 2016 must be made under terms consistent with a commercial dealing by 31 January 2017.

Key borrowing deadline extended for super
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Anonymous - Why does this get all the media attention when in reality it affects very few and the charges are minimal? How about reporting on all the ISA TPD.......
Anonymous - This got to be the smartest comment this century ?!....
nan - So what do you do if you are being ripped of and then can't afford the body corporate fees....
MarkL - The banks may not charge dead people any more ........... but they won't charge them any less either!....