The ATO on Wed 15.1.2014, issued Product Ruling PR 2014/1 (The tax consequences of entering into a Non-Entity Joint Venture Agreement with Tremplin Limited relating to participation in the National Rental Affordability Scheme (NRAS)). It applies to entities that enter into the scheme from Wed 15.1.2014 to 30 June 2016. The Ruling states that investor entities will be entitled to a tax offset for an income year pursuant to s 380-10(1) of the ITAA 1997 equal to an amount calculated under s 380-10(2). It also states that any cash payment made to investor entities (directly or indirectly) by the relevant State or Territory Government in relation to their participation in the NRAS will not be assessable income and will not be exempt income under s 380-35.

[LTN 9, 15/1/14]