Related party limited recourse borrowing safe harbour rate for 2023-24

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).

Do you need help with your situation or if you wish to discuss the above, please contact us. Our contact details.

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