The Government has announced plans to ensure non-arms length expense provisions operate correctly.
This was designed to prevent superannuation funds from circumventing contribution caps and inflating fund earnings through non-commercial dealings.
To do this, it would consult with industry stakeholders on the appropriate operation of the non-arms length income (NALI) and expense provisions.
This would particularly apply to Australian Prudential Regulation Authority (APRA) regulated super funds.
It said it received concerns from industry stakeholders regarding the interpretation of these provisions by the Australian Taxation Office in a Law Companion Ruling and the implications for APRA-regulated funds and self-managed super funds.
Senator Jane Hume, minister for superannuation, financial services and the digital economy, said: “We have heard the concerns of the industry and will work to amend the law to make sure it operates as intended.
“I’d like to thank all stakeholders that have engaged meaningfully on this issue so far.”
Any changes would apply from 1 July, 2022.
Comments
Ms Hume, Frydenberg, LNP & ATO, for at least the last 2 years Advisers, Accountants, SMSF Auditors, Super Funds have all told you how utterly STUPID the NALE & NALI rules and interpretations are. Of course you DON'T listen and implement moronic legislation.
Now as Ms Hume, Frydenberg & LNP try anything to save their necks at the election, all of a sudden you want to listen.
Ms Hume, Frydenberg & LNP the most arrogant, stupid mass over regulating and disgusting LNP ever seen. GET RID OF THESE CLOWNS NOW !!!!!!!!!!!!!!!!!!!!!!!!!!!
The next issue is the taxation of family trust beneficiaries the ATO wants to go back retrospectively and also require the cash flow funding of distributions i.e. adult children etc. It is a multi-billion dollar tax grab that will firmly hit many small businesses who operate through trusts. If you thought franking credits was an election issue, this is way bigger.
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