Draft ruling on limited recourse borrowing arrangements.
17 Oct 11 |
CCH TAX WEEK
Issue: Issue 38 6 Oct 2011
Pages: pp. 1-5
The Commissioner of Taxation has released his long awaited draft ruling on limited recourse borrowing arrangements, Draft SMSF Ruling SMSFR 2011/D1. LRBAs are borrowing arrangements that may be entered into by the trustees of superannuation funds without breaching the general prohibition against borrowing set out in s 67 of the Superannuation Industry (Supervision) Act 1993.
The draft ruling deals with three aspects of LRBAs:
• the nature of an asset/single acquirable asset
• the distinction between maintaining/repairing an asset and improving an asset, and
• when an asset becomes a different, or a replacement, asset.
The draft ruling does not deal with other important issues relating to LRBAs, including the application of the in-house asset rules to the “holding trust” once the borrowing has been repaid.
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PhilBroderick, CTA, is a principal of Sladen Legal and heads its superannuation team. He is member of a number of superannuation related committees. This includes being the co-chair of The Tax Institute’s superannuation committee and the chair of SISFA’s technical committee. He is also a member of number of the ATO’s superannuation liaison groups including the Superannuation Industry Relationship Network (SIRN) and the Superannuation Industry Stewardship Group (SISG). Phil is also heavily involved in liaising with Treasury andATO in relation to the implementation of new super laws and administrative practices. Phil’s areas of practice include superannuation, estate planning and succession, duties and state taxes, trusts, federal tax and business structuring. He is regular author and presenter. His articles have featured in The Tax Institute’s Taxation in Australia Journal and CCH’s Super News. He has presented at seminars and conferences conducted by The Tax Institute, the Television Education Network, Legalwise and various accounting bodies.
- Current at
16 April 2019
Heather is a superannuation law partner at Hall & Wilcox Lawyers. She has been involved in the development and implementation of superannuation policy through her roles as a member (and former Chair) of the Superannuation Committee of the Law Council of Australia and as a member of regulatory consultative committees and of the Board of Taxation Advisory Panel. A frequent speaker at superannuation conferences, she is a Chartered Tax Adviser, a member of the Australian Institute of Superannuation Trustees and the Australian Institute of Company Directors, and holds Honours degrees in Law and in Arts from the University of Melbourne.
- Current at
31 May 2019