With the deadline for getting related party LRBAs on commercial terms only a week away, SMSFs have been urged to make any last-minute changes immediately, with the ATO’s leniency likely already exhausted.
BDO Australia national leader of superannuation Shirley Schaefer says the deadline may have snuck up on some SMSF practitioners and trustees following major legislative changes to superannuation last year.
“I haven’t seen a lot on this recently and of course the 31st of January is the date that the ATO gave trustees to essentially sort those things out if they needed sorting out,” Ms Schaefer said.
The ATO confirmed in May last year that it would allow SMSF trustees until the 31 January 2017 to ensure that any LRBAs that their fund has are on term consistent with an arm’s length dealing or alternatively brought to an end.
Practical Compliance Guideline 2016/15 was released by the ATO early last April setting out the safe harbour terms on which SMSF trustees may structure their SMSF consistent with an arm’s length dealing.
Speaking to SMSF Adviser’s sister publication, nestegg.com.au, Skeggs Goldstien director Adam Goldstien said those who do not have their house in order “should act tomorrow”.
“I would like to think that most people would have their situation sorted by now, but if they haven’t, they should act immediately,” Mr Goldstien said.
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