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ARTICLE · 26 MAY 2012

ATO confirms position on superannuation borrowing arrangements

Cooper Grace Ward
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The ATO has released a ruling covering borrowing arrangements by trustees of self-managed superannuation funds.

AustraliaFinance and Banking
Scott Hay-Bartlem
Scott Hay-Bartlem
David Grace
David Grace
Charles Sweeney
Charles Sweeney
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On 23 May 2012, the ATO released SMSFR 2012/1 confirming its position on the application of a number of key concepts for limited recourse borrowing arrangements by trustees of self-managed superannuation funds (SMSFs).

The final ruling largely confirms the draft ruling (SMSFR 2011/D1), as well as providing some useful further detail and clarification.

The ruling applies to arrangements entered into on, or after, 7 July 2010 (the commencement of the current borrowing rules).

'Single acquirable asset'

The ATO restates its position in the draft ruling about what is a 'single acquirable asset' and also introduces a new factor that requires a unifying physical object (such as fixture attached to the land) that is:

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