NTAA submission on the proposed changes to the NALI rules for SMSFs

July 2023

The NTAA has sent a submission to Treasury raising certain concerns about the government’s proposed changes to the non-arm’s length income (‘NALI’) rules regarding general non-arm’s length expenses of SMSFs. Refer to Exposure Draft Treasury Laws Amendment (Measures for Consultation) Bill 2023: Non-arm’s length expense rules for superannuation funds. 

These changes effectively impose a limit on the amount of income that will be taxed as NALI where an SMSF has a general non-arm’s length expense. This includes situations where accountants and other professionals (e.g., financial advisers and lawyers) provide free or discounted services to their own SMSF or to a related party’s SMSF. 

We will keep members informed about these proposed changes. Click here to view a copy of our submission.