SMSFs reminded of upped interest rate for LRBAs
SMSF professionals are being reminded that a critical component of keeping an LRBA at arm’s length – its interest rate – has increased.
ATO Practical Compliance Guideline (PCG) 2016/5, released in April 2016, outlines the safe harbour terms that SMSFs can structure their LRBAs to ensure it is consistent with an arm’s length dealing, thereby avoiding the non-arm’s length income (NALI) provisions.
You’re out of free articles for this month
To continue reading the rest of this article, please log in.
SUBSCRIBE TO THE
SMSF ADVISER BULLETIN
Get the latest news and opinions delivered to your inbox each morning
