Legislation to apply look-through tax treatment for LRBAs has now been introduced: Tax and Superannuation Laws Amendment (2015 Measures No 2) Bill 2015.
This change will apply retrospectively from the start of the 2007/08 financial year.
Look-through tax treatment for LRBAs simply means that for income and capital gains tax purposes the existence of the holding trust is ignored.
Consequently, for income and capital gains tax purposes, the super fund will be treated as if it owned the asset held by the holding trustee. The amendments also deal with the GST consequences of LRBAs – by deeming the super fund as incurring the GST consequences of anything done by the holding trustee.
Also, interestingly (possibly), there has been no mention of the proposal to treat LRBAs as a derivative for financial advising purposes: possibly a case of death by silence.
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Michael Hallinan
Special Counsel
Townsends Business & Corporate Lawyers
(02) 8296-6205
Twitter: @TownsendsLaw
michael@townsendslaw.com.au
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