Liberty offset acct

Discussion in 'Loans & Mortgage Brokers' started by D&J, 2nd Jun, 2019.

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  1. D&J

    D&J Well-Known Member

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    Hey everyone

    Just a quick one, given Liberty is not a ADI, is their offset doesn't have an account number as such, is this still recognised as offset funds from an accounting perspective i.e. so for tax purposes?

    What defines whether money is offset or not?
     
    D&J, 2nd Jun, 2019
    #1
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    See
    TR 93/6
     
    Terry_w, 2nd Jun, 2019
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  3. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Im not a tax guy

    Most non banks have a separate facility which quarantines the cash from the loan, thus making ot a redraw offset

    From a tax perspective most of my client accountants are fine with this arrangement of dual accounts.

    Its the same set up as the OLD CBA MISA, same loan numbers and the offset.

    There is a diff from a fed gov guarantee though, an ADI offset account probably has the fed gov 250 k guarantee, the non banks one would not

    ta
    rolf
     
    Rolf Latham, 2nd Jun, 2019
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  4. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    I am a tax guy - a tax lawyer - and my advice is to assume the offset is non-complying until you see evidence to the contrary such as a product ruling, which they might have, or apply for a private binding ruling.

    I think it could be a complying offset, but I have never investigated.
     
    Terry_w, 2nd Jun, 2019
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  5. D&J

    D&J Well-Known Member

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    Terry, how can I find out if there is a product ruling?
     
    D&J, 2nd Jun, 2019
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  6. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    do a search or ask them
     
    Terry_w, 2nd Jun, 2019
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