In a statement released today, Senator Jane Hume has announced government and Treasury will consult with relevant industry stakeholders on the appropriate operation of the non-arm’s length income and expense provisions, particularly for APRA‑regulated superannuation funds.
The non-arm’s length expense provisions were designed to prevent superannuation funds from circumventing contributions caps, and artificially inflating fund earnings through non-commercial dealings, said Ms Hume.
“The Government understands that some industry stakeholders have concerns regarding the interpretation of these provisions by the Australian Tax Office in a recent Law Companion Ruling and the implications of this ruling for both APRA-regulated funds and SMSFs,” said Ms Hume.
“We have heard the concerns of the industry and will work to amend the law to make sure it operates as intended.”
The Government will ensure the legislative changes apply from 1 July 2022.
Further details of the consultation process will be provided to industry stakeholders as soon as practicable.
Ms Hume thanked all stakeholders that have engaged meaningfully on this issue so far.
Scrap NALE. If a person is lowering the cost of the super fund, this will increase the SMSF balance and meets the sole purpose test. Waste of time and resources…
I can only concur
Us accountants are normally liberal supporters and with this attack on us, especially smsf,are dumbfounded.i cant even use my firms software to do the accountants of the smsf without paying for it or its nalu and straight to the western front for me.mrs hume you are way out of touch and thats what you will find out during the election.meanwhile my tiler gives me 2 prices one for cash one without…and mrs hume you saying that your listening to stakeholders.meanwhile we get the following thrown at us.tax and bas agents,
Free implementation of govt job keeper,job maker,state assistance,
Free implemantion of stp,cant audit our partners clients smsf must be outsourced,accounting exemption on financial advice removed so we cant tell clients to make contributions or set up a fund..attack on family trust transactions that have been accepted for a hundred years please the list goes on and on and your listening to stakeholders my backside you are..
Well said.
Sounds like the insudtry funds would get burned, as the first reference n this article is to particulalarly the APRA regulated funds. Maybe all the related party and union operations would be thrown into dissaray as a result of this legislation and the fund would be slammed by the ATO.
Thank You and the penalty should reflect the “crime” !
The LNP & the ATO have been told hundreds of times over last 2 plus years about this NALI madness.
So they pass the most stupid legislation that they now will look to fix only because the LNP are trying desperately to save their own necks.
Frydenberg, Hume, LNP don’t deserve another term. Get rid of these clowns.
Good, then they can work on the ATO and its crazy s100A draft ruling!
Let me guess, the ATO will come out with something even more confusing
…. by consulting with lawyers and academics. 😛
Hume, Frydenberg, LNP & ATO proving how useless the Canberra bubble bureaucratic clowns really are. Years of telling them how stupid the laws were but of course they don’t listen and implement. Now as the LNP try anything to save their necks they want to consult industry.
Pathetic Ms Hume, Frydenberg, LNP & ATO just pathetic.