Legislation to apply look-through tax treatment for LRBAs has now been introduced with Tax and Superannuation Laws Amendment (2015 Measures No 2) Bill 2015.
Special counsel at Townsends Business & Corporate Lawyers Michael Hallinan told SMSF Adviser the proposed legislation will clear up confusion about whether the holding trust is a taxable entity in its own right.
“This legislation basically says that for taxation purposes you treat the arrangements as if the property is held directly via the super fund. That’s for income tax, capital gains tax and GST,” Mr Hallinan said.
“So as long as the fund is a complying fund and the arrangement qualifies as a LRBA, we now no longer have any tax issues or tax uncertainties."