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Edited version of your written advice
Authorisation Number: 1051465212774
Date of advice: 11 December 2018
Ruling
Subject: National rental affordability scheme arrangement
In view of the privacy and commercial-in-confidence issues in respect of this private ruling, the following summary is provided.
A product was established which involves participation in the National Rental Affordability Scheme (NRAS) by trustee of a Trust (the Trust).
The investors that will invest in the product through the Trust are employees of Group X that are resident in Australia (the Investors).
The Commissioner ruled that:
● The trustee of the Trust is a member of an ‘NRAS Consortium’ as defined under subsection 995-1(1) of the Income Tax Assessment Act 1997 (ITAA 1997).
● The trustee of the Trust is deemed to be issued with an NRAS certificate pursuant to subsection 380-14(2) of the ITAA 1997.
● NRAS rent will be taken to be derived by the trustee of the Trust for the purposes of subparagraph 380-25(3)(a) of the ITAA 1997.
● The payment of certain costs by the Trust under the Arrangement will be deductible under section 8-1 of the ITAA 1997 or subsection 230-15(2) of the ITAA 1997.
● The Commissioner will exercise the discretion in subsection 272-5(3) of Schedule 2F to the Income Tax Assessment Act 1936 (ITAA 1936) to deem the beneficiaries of the Trust as having fixed entitlements to all of the income and capital of the trust?
● The payment of certain costs by the Trust are wholly consideration for an input taxed financial supply pursuant to section 40-5 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)?