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The Australian Tax Office (ATO) has issued draft changes to Taxation Ruling TR 2002/14 – Income tax: Taxation of retirement village operators for public consultation.
The Ruling has been updated to incorporate a draft compliance approach appendix to provide compliance guidance for South Australian retirement villages. This approach has been developed in light of the SA Retirement Villages Act 1987 being repealed and replaced by the Retirement Villages Act 2016 which comes into effect on 1 January 2018.
In particular, the changes deal with how the statutory buy-back mechanism affects lease premium contracts and loan contracts.
The draft ruling for consultation can be found here.
The Retirement Living Council Tax Committee will be lodging a submission. Feedback is due to the ATO by 2 February 2018.