Following the publication of this PBR, there has been mounting industry speculation about a shift in the view of the ATO in relation to LRBAs.

Late last week, the ATO held a discussion with industry representatives to discuss whether there is a need for the ATO to issue a public view on the matter.

Multiport’s technical services director Philip La Greca attended the meeting. Speaking to SMSF Adviser, he confirmed the ATO is considering whether it needs to issue a new ruling.

“They do recognise that it is causing angst I the marketplace because people are wanting to know 'does my arrangement get caught by this?’” Mr La Greca said.

“You expect and should hope that there would be at least some form of tax or superannuation [or] possibly even an SMSF ruling.

“I think at the end of the day everyone would like some clear guidance.”

Also speaking to SMSF Adviser, The SMSF Academy’s managing director Aaron Dunn similarly said some guidance is needed from the ATO.

“There is now a fairly sizeable shift and as a result of that shift there is probably a need for the commissioner to give us some guidance,” Mr Dunn said.

“The industry understood a view that was taken, and many were looking at that path, and now it’s gone quite the other way.

“There’s some guidance that’s needed there as to what would be acceptable without creating scheme that would be determined as non-arm’s length income.”