The ATO issued two Product Rulings on Wed 22.8.2018:
- PR 2018/9 – Tax consequences for an Owner entering into a concurrent lease with Future Rent Pty Ltd. This scheme involves a concurrent lease with Future Rent Pty Ltd over a property that is subject to a residential tenancy agreement. The ruling treats the rental prepayments from Future Rent to the owner as ordinary income, which are assessable on an accruals basis over the term of the concurrent lease. DATE OF EFFECT: 22 August 2018; and
- PR 2018/10 – Tax consequences for a Participant in an urBau joint venture project. The ATO accepts that the arrangement is an unincorporated joint venture and that Pt IVA does not apply. The ruling also outlines the CGT and GST consequences for participants. DATE OF EFFECT: 22 August 2018.
[LTN 161, 22/8/18; Tax Month – August 2018]