Understanding Non-Arm's Length Income (NALI) Provisions in Superannuation Funds
Background:
Before recent amendments, non-arm's length income (NALI) for complying superannuation funds, including SMSFs, was defined in Section 295-550. It encompassed various types of income, including:
- Income from schemes where parties weren't dealing at arm's length and exceeded what would have been expected under arm's length dealings.
- Dividends from private companies, unless consistent with arm's length dealings.
- Trust income received by the fund as a beneficiary, except for income from fixed entitlements or distributions from discretionary trusts.
Key Points:
These rules remained intact after the recent amendments. However, the amendments clarified the application of NALI provisions when a complying superannuation fund incurs or doesn't incur certain losses, outgoings, or expenditures.
Expert Assistance:
For queries or assistance regarding NALI provisions and their implications for superannuation funds, reach out to Tax Ideas Accountants & Advisers at +61 2 83181545, or book an appointment through our live calendar.
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- Topics on self-managed superannuation fund – SMSF (13)
- Topics on self-managed superannuation fund – SMSF (14)
- Topics on self-managed superannuation fund – SMSF (15)
- Topics on self-managed superannuation fund – SMSF (16)
- Topics on self-managed superannuation fund – SMSF (17)
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