Law companion rulings (LCRs) are a type of public ruling.
They give our view on how recently enacted law applies and clarity and certainty around our interpretation of the new legislation.
An LCD is usually:
- considered at the same time as the drafting of the Bill
- release in draft form for comment soon after the Bill receives Royal Assent.
When law companion rulings may be published
An LCR is not developed for all new law. We usually publish an LCR when new law introduces a new regime or particularly new and unfamiliar concepts.
We may also publish an LCR where taxpayers need to take additional action to comply with the law. This provides certainty on what you need to do.
We will not usually issue an LCR where the new law is straightforward, is limited in its application or does not relate to an obligation to pay tax, penalties or interest.
Relying on law companion rulings
Because they are prepared at such an early time, LCRs are not informed by experience of the new law operating in practice. While they offer the same protection in relation to underpaid tax, penalties or interest as a normal public ruling, this only applies if you rely on it in good faith.
LCRs are published on our ATO Legal database. For more information about LCRs, refer to Law Companion Ruling LCR 2015/1 Law Companion Rulings: purpose, nature and role in ATO’s public advice and guidance.