Date of article: 11 July 2023
Last updated: 11 July 2023
Related party limited recourse borrowing safe harbour interest rate for 2023-24 is 8.85%.
The ATO safe harbour interest rate for related party limited recourse borrowing for real property for 2023-24 year is 8.85%. This is an increase of 3.50% from the 2022-23 year of 5.35%.
Those relying on the ATO's safe harbour terms need to recalculate their repayment amount to account for the increase interest rate effective from 1 July 2023. The safe harbour terms is set out in ATO Practical Compliance Guidelines (PCG) 2016/5 – Income tax arm’s-length terms for limited recourse borrowing arrangements.
| Financial year | Real property |
| 2023-24 | 8.85% |
| 2022-23 | 5.35% |
| 2021-22 | 5.10% |
| 2020-21 | 5.10% |
| 2019-20 | 5.94% |
| 2018-19 | 5.80% |
| 2017-18 | 5.80% |
| 2016-17 | 5.65% |
| 2015-16 | 5.75% |
For more details of the safe harbour terms, see ATO guidance for LRBA related party loan (safe harbour).
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