New tax guideline released

The Australian Tax Office (ATO) has published Practical Compliance Guideline PCG 2019/4 Retirement villages: ATO compliance approach - exit allocable cost amount calculation at step 4 for certain resident liabilities under lease premium or loan/lease occupancy agreements

This Guideline outlines the ATO's administrative approach to address practical difficulties relating to the interaction of the consolidation regime and the treatment of certain liabilities under our taxation rulings when a tax consolidated group sells their interests in a subsidiary member that owns a retirement village.

The Retirement Living Council Tax Committee earlier provided feedback to the ATO on a draft of this Guideline.

Download the Guideline here.