A product ruling sets out our opinion about the tax treatment applying to the specified arrangement. While we are bound by law to the rulings we give (unless the arrangement actually carried out is materially different to the arrangement ruled on), a product ruling is not a precedent.
The introduction of other arrangements or additional features (such as financing) to an arrangement that has been ruled on may lead to a conclusion that a material difference exists. This will happen if the change produces a different tax outcome. If this occurs, we may take action to clarify the consequences.
Terms of use
Product rulings are made on the basis that the applicant and their associates will abide by an agreement on terms of use.
Any failure to comply with the terms of use may lead to the withdrawal of the ruling.
Period of effect
Many product rulings have prospective effect only – that is, they apply only to arrangements beginning on or after the date the ruling is made. If this is the case, it means that participants are not covered by the product ruling if they enter into the arrangement before it was made.
Product rulings may apply before the date that the product ruling is issued. Where this is the case, the product ruling will clearly state that it applies before the date of issue.
A product ruling does not imply ATO endorsement
We do not sanction or guarantee any product as an investment. Further, we give no assurance that:
- the product is commercially viable
- charges are reasonable, appropriate or represent industry norms
- projected returns will be achieved or are reasonably based.
Potential participants must form their own view about the commercial and financial viability of a product. They need to consider issues such as:
- whether the projected returns are realistic
- the 'track record' of the management
- the level of fees compared with similar products
- how the investment fits an existing portfolio.
We recommend you consult a financial (or other) adviser for this information.
Changes to product rulings
We may change a product ruling after it has been issued if the arrangement changes. We do this by issuing an addendum or a withdrawal notice to the initial product ruling which explains what the changes mean for participants.