Self Managed Superannuation Funds (Limited Recourse Borrowing Arrangements – In-House Asset Exclusion) Determination 2014 (Cth)

Legislative Instrument

Self Managed Superannuation Funds (Limited Recourse Borrowing Arrangements – In-house Asset Exclusion) Determination 2014

I, Alison Lendon, Deputy Commissioner of Taxation, make this determination under paragraph 71(1)(f) of the Superannuation Industry (Supervision) Act 1993

Dated: 4 April 2014

Alison Lendon Deputy Commissioner of Taxation

1. Name of Determination

This determination is the Self Managed Superannuation Funds (Limited Recourse Borrowing Arrangements – In-house Asset Exclusion) Determination 2014.

2. Commencement

This determination is taken to have commenced on 24 September 2007.

3. Determination

3.1. An asset (the investment asset) of a self managed superannuation fund (the fund) that is an investment in a related trust of the fund, is not an in‑house asset of the fund at a time (the test time) where:

(a) the application of subsection 71(8) of the Superannuation Industry (Supervision) Act 1993 (SIS Act) would result in the investment asset not being an in-house asset of the fund at the test time but for the fact that:

(i) if a borrowing referred to in paragraph 71(8)(b) of the SIS Act has not yet begun – such a borrowing has not yet begun; and

(ii) the related trust does not yet hold the asset referred to in paragraph 71(8)(c) of the SIS Act; and

(b) it is reasonable to conclude at the test time that:

(i) if a borrowing referred to in paragraph 71(8)(b) of the SIS Act has not yet begun – such a borrowing will occur; and

(ii) the related trust will hold the asset referred to in paragraph 71(8)(c) of the SIS Act; and

(iii) the application of subsection 71(8) of the SIS Act would result in the investment asset not being an in-house asset of the fund from the time the related trust begins to hold the asset referred to in paragraph 71(8)(c) of the SIS Act.