LRBA extension welcomed
The SMSF Association has welcomed the Australian Taxation's Office (ATO) decision to extend the deadline for self-managed superannuation fund (SMSF) trustees to review their limited recourse borrowing arrangements (LRBAs).
The extension to 31 January 2017 gives trustees an extra seven months to take action for their LRBAs to meet the safe harbour terms of LRBAs to be consistent with an arm's length dealing, outlined in the Practical Compliance Guideline 2016/5.
LRBAs that are not held on arm's length terms are liable to having income generated from the investment taxed as "non-arm's length income", attracting a tax rate of 47 per cent.
SMSF Association chief executive, Andrea Slattery, said "the 30 June 2016 deadline was a tight deadline for trustees to take remedial action".
"Feedback from our members prompted us to request the ATO to give SMSF trustees and their advisers more time to take the necessary steps," Slattery said.
"This extension of time shows that the ATO is listening to the SMSF sector's concerns as well as reinforcing why we believe it is the right regulator for our part of the superannuation industry."
Recommended for you
The impact of identity theft and its threat to superannuation savings were highlighted in a case that went before the Federal Court at the end of 2023.
A recent NSW Supreme Court decision is an important reminder that while super funds may be subject to restrictive superannuation and tax laws, in essence they are still a trust and subject to equitable and common law claims, says a legal expert.
New research from the University of Adelaide has found SMSFs outperformed APRA funds by more than 4 per cent in 2021–22.
The SMSF Association has made a number of policy recommendations for the superannuation sector in its pre-budget submission to the government.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
225.31 3 y p.a(%)
2
Loftus Peak Global Disruption Fund Hedged
120.73 3 y p.a(%)
3
Global X 21Shares Bitcoin ETF
72.47 3 y p.a(%)
4
Paradice Australian Mid Cap A
69.09 3 y p.a(%)
5
Global X Ultra Long Nasdaq 100 Complex ETF
61.94 3 y p.a(%)
