Your shopping cart is empty
- Home
- LRBAs and related party leases: what you need to know.
LRBAs and related party leases: what you need to know.
Publication date: 07 Nov 14 | Source: RETIREMENT & ESTATE PLANNING BULLETIN
Issue: Vol 17 No 8 September 2014
Pages: pp 129-131
Abstract:
A common strategy implemented by business clients is to acquire business real property via their SMSF and then lease this property to a related party. Borrowings are often used to finance the acquisition.
Complexity arises when the related party tenant wishes to make changes or improvements to the property.
Does the installation of a fit out contravene the prohibition against related party acquisitions? Do any improvements give rise to a new asset for SMSF borrowing purposes? Does the value of the fit out count as a contribution?
This item is not available for download from this website. Please contact the Tax Institute library for assistance. Charges will apply.
Author profiles
Daniel Butler CTA
Daniel of DBA Lawyers, is one of Australia’s leading SMSF lawyers and has worked predominantly in the SMSF, tax and related fields for over 30 years. He is a regular presenter on SMSF topics and has published extensively in professional journals including contributing a monthly article on SMSFs to the Taxation in Australia and other media. Dan is a member of the ATO’s Superannuation Industry Relationship Network (SIRN), the Chair of the Tax Institute’s National Superannuation Committee, a member of the Law Institute of Victoria’s Tax Committee, and is involved with a number of other tax and SMSF committees and discussion groups. Dan presents on the subject Taxation of Superannuation at the University of Melbourne’s Master of Laws/Tax program. Dan is also a Specialist SMSF Advisor.
- Current at
04 September 2019
More by Daniel BUTLER
- Superannuation: SMSF investment strategies: Are they a financial product? - 01-November-2019
- Superannuation: Downsizer contributions: Basics, tips and traps - 01-October-2019
- Superannuation: SMSFs investing via unit trusts - 01-September-2019
- Superannuation: Is the SG system in need of an urgent overhaul? - 01-August-2019
- Superannuation: Executors, SMSFs and conflicts of duty - 01-July-2019
- Superannuation: Reversionary pension nominations and BDBNs - 01-June-2019
- Superannuation: What ATO publications can be relied on? - 01-May-2019
- Superannuation: SMSF death benefit dispute: Re Marsella - 01-April-2019
- Superannuation: Labor’s superannuation and related proposals - 01-March-2019
- Superannuation: Who can provide taxation advice? - 01-February-2019
- Superannuation: What disqualifies you from having an SMSF? - 01-December-2018
- Superannuation: SMSF succession strategies - 01-November-2018
- Superannuation: The sole purpose test substantially clarified - 01-October-2018
- Superannuation: New CGT withholding regime: Impact on SMSFs - 01-September-2018
- Superannuation: Stocktake on recent supannuation changes - 01-August-2018
- Superannuation: Proposed SG amnesty raises opportunities and risks - 01-July-2018
- Superannuation: How the 2018 federal Budget will impact SMSFs - 01-June-2018
- Superannuation: Total superannuation balance milestones - 01-May-2018
- Superannuation: ATO compliance action penalties for SMSFs - 01-April-2018
- Superannuation: Triggering your bring-forward NCCs cap - 01-March-2018
- Super reform: Snapshot for 30 June 2018 planning paper - 22-February-2018
- Superannuation: How will the FHSS scheme work for SMSFs? - 01-February-2018
- Superannuation: CGT relief for SMSFs - 01-December-2017
- Superannuation: Reversionary transition to retirement income streams - 01-November-2017
- Reversionary transition to retirement income streams - 30-October-2017
- Is maintaining a second SMSF a Pt IVA risk? - 01-October-2017
- The new age TRIS – tips and traps - 01-September-2017
- Superannuation: Fundamentals of the proportioning rule - 01-August-2017
- Superannuation: Critical case: Wooster v Morris - 01-July-2017
- The proportioning rule - 16-June-2017
- Superannuation: Understanding ECPI in view of super reforms - 01-June-2017
- SMSFs and employee share schemes - 10-May-2017
- Superannuation: Lump sum payment arising from a partial commutation - 01-May-2017
- Superannuation: What ATO publications can be relied on? - 01-April-2017
- Superannuation: TRIS strategies after 1 July 2017 - 01-March-2017
- Superannuation: Transitional CGT relief for pension and TRIS assets for FY2017 - 01-February-2017
- Superannuation: ATO’s revised view on LRBAs and the NALI risk - 01-December-2016
- ATO reconsiders LRBAs and the NALI risk - 15-November-2016
- Superannuation: The $1.6m transfer balance cap explained - 01-November-2016
- Revised contribution proposals paper - 20-October-2016
- The $1.6m transfer balance cap explained - 11-October-2016
- Superannuation: Accountants and the new AFSL regime - 01-October-2016
- $500K lifetime contribution cap: urgent fix needed! - 15-September-2016
- Superannuation: Automatically reversionary pensions and super reform - 01-September-2016
- Automatically reversionary pensions and super reform - 31-August-2016
- Proposed superannuation reforms - July 2016 - 04-August-2016
- Superannuation: Proposed superannuation reforms - July 2016 - 01-August-2016
- The new $500,000-lifetime contribution cap - 12-July-2016
- Superannuation: $1.6m balance cap examined - More tax on death benefits - 01-July-2016
- The new $500,000 lifetime contribution cap is retrospective and bad law - 15-June-2016
- Superannuation: New $500,000 lifetime cap is bad law - 01-June-2016
- The advantages of conditional membership in an SMSF - 16-May-2016
- Superannuation: Changing SMSF trustees - Tips and traps - 01-May-2016
- Superannuation: The advantages of conditional membership in an SMSF - 01-April-2016
- Superannuation: Transferring foreign super fund amounts to an Australian resident - 01-March-2016
- Superannuation: Reconsidering incorporated contractors in an SG context - 01-February-2016
- Superannuation:SMSFs investing via unit trusts - 01-December-2015
- Superannuation: Amendments to the superannuation guarantee charge - 01-November-2015
- Superannuation: Accountants planning to have or not to have an AFSL after mid-2016 - 01-October-2015
- Superannuation: What wins out - an ARP or a BDBN? - 01-September-2015
- What wins out - an ARP or a BDBN? - 21-August-2015
- Superannuation: The changing landscape of insurance in SMSFs - 01-August-2015
- Can an adult child be a tax dependant - ATO ID 2014/22 says yes. - 02-July-2015
- Superannuation: The legal minefield of BDBNs - 01-July-2015
- Superannuation: Managing tax losses in an SMSF - 01-June-2015
- Superannuation: Another BDBN fails due to poor SMSF documents - 01-May-2015
- Superannuation: Temporary incapacity can provide welcome relief - 01-April-2015
- Superannuation: Paying a pension in kind using the partial commutation strategy - 01-March-2015
- Superannuation: SMSF borrowing - 01-February-2015
- Superannuation: SMSF succession strategies - 01-December-2014
- ATO ID 2014/23 and loans to trusts - 03-November-2014
- Superannuation: ATO provides clarification on TRIS strategies - 01-November-2014
- LRBAs and related party leases: what you need to know - 07-October-2014
- Superannuation: ID 2014/23 and loans to trusts - 01-October-2014
- Superannuation: LRBAs and related party leases: What you need to know - 01-September-2014
- TD 2014/7 - segregated bank accounts are now made easy, so why have unsegregated assets? The simple answer! - 19-August-2014
- SMSF buying overseas property - tips and traps - 19-August-2014
- Superannuation: SMSFs buying overseas property – Tips and traps - 01-August-2014
- Money on the table for defective ATO administration - 15-July-2014
- Superannuation: Independent contractors’ recent wins against ATO - 01-July-2014
- Superannuation: Non-arm’s length SMSF loans = huge tax bill! - 01-June-2014
- Non-arm's length SMSF loans = huge tax bill! - 26-May-2014
- Superannuation: Cross-insurance in an SMSF - 01-May-2014
- TR 2010/1: did the ATO get it right? Liwszyc v Commissioner of Taxation tells all! - 29-April-2014
- Superannuation: TR 2010/1: Did the ATO get it right? - 01-April-2014
- TR 2013/D7 - apportioning SMSF expenses - 10-March-2014
- TR 2013/D7 – Apportioning SMSF expenses - 01-March-2014
- Superannuation: SMSF trustees – Disqualified due to dishonest conduct - 01-December-2013
- Automatic pension reversion - still worthwhile? - 19-November-2013
- What's hot in super paper - 10-October-2013
- Superannuation: Automatic pension reversion: Still worthwhile? - 01-October-2013
- Superannuation: International issues facing SMSFs today - 01-September-2013
- Small business CGT relief and related party transactions paper - 29-August-2013
- Superannuation: Pension changes - The saga continues - 01-June-2013
- Superannuation: Seeking compensation for defective ATO administration - 01-May-2013
- Tax education: What happens when SMSF trustees don’t agree? - 01-March-2013
- Superannuation: Excess contributions tax - 01-February-2013
- Superannuation: Auto-reversionary pensions after the MYEFO - 01-December-2012
- Superannuation: Making pensions reversionary “mid-stream” - 01-November-2012
- Superannuation: Related party lending and SMSFs - Has the ATO really given a “carte blanche”? - 01-October-2012
- Superannuation: Latest SMSF borrowing developments - 01-August-2012
- Superannuation: When is a grandchild financially dependent on a grandparent? - 01-July-2012
- International issues facing SMSFs today - 01-May-2012
- Superannuation: Temporary residents and superannuation - 01-April-2012
- Superannuation: FY 2012 SMSF checklist - 01-February-2012
- Superannuation: SMSF succession planning for advisers - 01-November-2011
- SMSF succession planning. - 26-September-2011
- Superannuation: SMSF succession planning - 01-August-2011
- SMSFs investing in unit trusts. - 21-July-2011
- Planning and structuring pensions. - 04-July-2011
- Planning and structuring pensions. - 02-June-2011
- Superannuation: SMSF borrowings: The intricacies of the holding trust - 01-June-2011
- SMSF borrowings - holding or bare trusts? - 27-May-2011
- Superannuation: Thinking about your pensions - 01-May-2011
- SMSFs investing in property and borrowing paper - 02-March-2011
- Superannuation: SMSFs investing in unit trusts - 01-December-2010
- Superannuation: Practical advantages of an SMSF corporate trustee - 01-November-2010
- ATO clarification for super funds borrowing. - 11-October-2010
- ATO clarification for super funds borrowing - 01-October-2010
- Superannuation: Integrated SMSF succession planning - 01-August-2010
- CGT small business concessions and superannuation. - 22-June-2010
- Superannuation: Henry and Cooper — what does it mean for you? - 01-June-2010
- Superannuation: Greater certainty for SMSF borrowing arrangements - 01-May-2010
- Greater certainty for SMSF borrowing arrangements. - 08-April-2010
- What is a contribution? - 06-April-2010
- The consequences of non-compliance. - 06-April-2010
- Superannuation: What is a Contribution? - 01-April-2010
- Succession to a SMSF - 01-March-2010
- Succession to a SMSF. - 09-February-2010
- ATO's step up in rendering SMSFs non-complying: what it means to you. - 08-February-2010
- Superannuation: Insurance in super funds - 01-December-2009
- Important clarification for SMSFs using enduring powers of attorney. - 24-November-2009
- Important clarification for SMSFs using enduring powers of attorney. - 22-October-2009
- The bind that ties? - 01-October-2009
- SMSFs and non-arm’s length (special) income - 01-October-2009
- SMSFs & non-arm's length income: the key "must know" elements. - 29-September-2009
- Superannuation update: Key ruling on guarantees and contributions - 01-September-2009
- How long can a BDBN last for? - 10-August-2009
- Real estate development and SMSFs paper - 24-July-2009
- SMSF trustees and property. - 02-June-2009
- Anti-detriment deductions. - 12-May-2009
- Minimum pension payments officially lowered. - 28-April-2009
- Can an SMSF run a real estate development business? - 09-April-2009
- Superannuation: The hot issues paper - 13-March-2009
- Anti-detriment deductions. - 25-November-2008
- Anti-detriment deductions. - 11-November-2008
- Top three errors in smsf paperwork. - 08-October-2008
- Caution for SMSF trustees travelling overseas - 01-February-2008
- Caution for SMSF trustees travelling overseas. - 08-November-2007
- Self managed superannuation fund breaches : will an enforceable undertaking assist? - 16-August-2007
- Superannuation - 2006 Budget update - 01-November-2006
- 2006/07 Budget super news - 01-June-2006
- International issues & superannuation - 01-June-2006
- Resident super funds and the double tax risk. - 25-May-2006
- Superannuation and estate planning strategies paper - 11-May-2006
- SMSF deeds varied via the web - the risks! - 22-December-2005
- Superannuation and pension strategies paper - 08-October-2005
- SMSF deeds varied via web. The risks! - 01-August-2005
- Succession planning issues seminar paper - 16-November-2004
- Defined Benefit Pensions - following budget changes - 01-August-2004
- Elections for Superannuation Funds & Unit Trusts seminar paper - 09-June-2004
- Pensions in Self Managed Superannuation Funds & Estate Planning convention paper - 02-April-2004
- Self managed super fund pensions and PDS - 01-February-2004
- Superannuation and Residency - 01-June-2003
- Forfeiture - 01-July-2002
- Binding death benefit nominations and certainty - 01-November-2001
- PSI and Superannuation - 01-September-2001
- Investments and entity tax - 13-March-2001
- Superannaution: golden handshakes and RBL planning - 01-October-1999
- Retirement & Restructuring Planning - 27-July-1999
- Retirement and restructuring planning - 27-July-1999
- New investment rules - 09-June-1999
- Superannuation workshop - 09-June-1999
- Making allocated pension strategies work for you - 01-April-1999
- Bad medicine - 01-July-1998
- D.I.Y. super funds and trusts - 04-June-1998
- Planning Issues Estate/Business Succession - 30-July-1997
- Investments - Lawyers view - 10-April-1997
- Investments - Lawyers view - 10-April-1997
- Small fund (Session two)| Large fund (Session two) : Superannuation Complaints Tribunal - 17-April-1996
- Salary packaging & super planning (Session three) - 02-April-1996
- Superannuation - contributions, benefits and latest tax planning strategies - 08-March-1996
- Taxation of deceased estates ATO perspective and administration.| Estate Planning Consideration.| Planning for deceased estates.| Report of ATO views and unresolved issues. - 21-September-1993
Click here to expand/collapse more articles by Daniel BUTLER.
Tina Conitsiotis
Tina is a Consultant for DBA Lawyers. - Current at 22 July 2013More by Tina Conitsiotis
- LRBAs and related party leases: what you need to know - 07-October-2014
- Superannuation: LRBAs and related party leases: What you need to know - 01-September-2014
- Money on the table for defective ATO administration - 15-July-2014
- McIntosh case has important implications for SMSF succession planning - 01-July-2014
- Automatic pension reversion - still worthwhile? - 19-November-2013
- Superannuation: Automatic pension reversion: Still worthwhile? - 01-October-2013
- Superannuation: International issues facing SMSFs today - 01-September-2013
- Superannuation: Pension changes - The saga continues - 01-June-2013
- Superannuation: Seeking compensation for defective ATO administration - 01-May-2013
- Superannuation: Temporary residents and superannuation - 01-April-2012
- Superannuation: Impact of SMSFR 2011/D1 - 01-October-2011
- Superannuation: Why your SMSF should have a sole purpose corporate trustee - 01-September-2011
- Superannuation: Why your children should not be members of your SMSF - 01-July-2011
Click here to expand/collapse more articles by Tina Conitsiotis.
Contact
- Contact us
- Help
- 1300 829 338
- tti@taxinstitute.com.au
- State Office Contacts
Privacy, Copyright and Disclaimer |
Code of professional conduct for members |
Conditions of Use |
Sitemap |
Social Media
© 1996-2019 The Tax Institute (ABN 45 008 392 372 (PRV14016)) All rights reserved.The Tax Institute is a Recognised Tax Agent Association (RTAA) under the Tax Agent Services Regulations 2009.