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Related Party LRBA (Property) meeting ATO Guidelines

About Product 

Completing a related party loan using the Commissioner’s guidelines – PCG 2016/5, can require a lot of work. There are up to six (6) legal documents to be completed which ordinarily, can take a lawyer some weeks to prepare and cost thousands of dollars in legal fees.

The LightYear RPA Related Party LRBA (RRPL) can be completed in minutes, saving time, costs and bringing advance legal templates to an accountant’s or financial planner’s office.

Provided under Strategist membership.

► The master document has been signed off by Abbott & Mourly and is congruent with Australian law.

General Information

The LightYear RPA – Related Party LRBA meeting ATO guideline – PCG 2016/5 RRPL, includes the following six documents compiled into one process:

  1. A Product Disclosure Statement
  2. The Commissioner’s guideline PCG 2016/5 as a reference for compliance purposes
  3. Trustee Minutes upgrading the deed and authorising the acquisition of a single acquirable asset under a Holding Trust
  4. SMSF Deed Upgrade plus Minutes
  5. Investment Strategy covering asset and loan
  6. Holding Trust establishment plus Minutes
  7. Related Party Loan
  8. Mortgage Deed

Benefits

An advance strategy carefully thought through by our legal team. It is worked into appropriate processes, with a documentation trail to ensure compliance, certainty, security and a significant saving in time and resources.

Frequently Asked Legal Questions

What happens at the end of the borrowing arrangement?

A limited recourse borrowing arrangement may be ended either by: (a) the self-managed superannuation fund paying off the loan and then collapsing the custodian trust by having the legal title to the asset transferred into its name; or (b) the custodian selling the asset and then using the sale proceeds to pay out the loan - this would occur where the self-managed superannuation fund is in default of its loan obligations. Different tax consequences arise depending on how a limited recourse borrowing arrangement is ended. Please contact us at support@lightyeardocs.com.au should you require assistance. 

How long does this document take to assemble?

Depending on the complexity of the data, this document should take approximately 15-30 secs to assemble. If you experience timing outside of this please contact Support via the Surge app, alternatively please read this article for troubleshooting tips https://info.lightyeardocs.com.au/supportcentre/troubleshooting-longer-assembly-times-timeouts .

Is this document a legal document?

All master documents have been signed off by Abbott & Mourly lawyers. Tony Anamourlis of Abbott & Mourly advises that “at no time, due to inbuilt legal protection and security measures can a user change or amend a document on the LightYear Docs platform that has been signed off by a practicing solicitor. To do so would result in the user drafting a document of a legal nature and engaging in the provision of legal services. In addition, it would be a breach of copyright. In our opinion when completing the form fields through the LightYear Docs platform, users and their employees are merely carrying out an administrative task which is not the provision of legal advice.”

However in some complex areas such as the insertion of a varied range of client instructions into a Will or other such documents the user must be mindful of the extent to which a document is being drafted by the user rather than merely the administrative task of completing a form where the relevant fields are inserted into the reviewed and signed  legal document provided by Abbott & Mourly.

The above advice is born out of numerous cases dating back to Re Sanderson, Ex parte Law Institute of Victoria [1927] VLR 394, 397 where the Court held:

“if a person does a thing usually done by a solicitor, and does it in such a way as to lead to the reasonable inference that he is a solicitor – if he combines professing to be a solicitor with action usually taken by a solicitor – I think he then does act as a solicitor.”

Likewise in ACCC v Murray (2002) 121 FCR 428, 448 where Murray was building a franchise business that involved the legal writing and drafting of Wills from scratch based on the client’s personal circumstances.  The Court held that this process was legal work.

Is the document easy to read?

All LightYear Docs products are written in plain English and assessed for readability. If at any time you come across any errors, please contact support@lightyeardocs.com.au.

What lawyers sign off on the LightYear Docs documents?

All LightYear documents are prepared and signed off by Abbott & Mourly from Melbourne, Sydney and Brisbane.

Are the LightYear Docs documents reviewed regularly?

All LightYear Docs documents form part of the LightYear Docs internal review process. We review all documents at least annually or when required to do so due to changes in legislation. Further details of this process and a review schedule is include on this website.