New rules for NALI and NALE | Accurium

The amendments to the Non Arm's Length Income (NALI) provisions broaden their application for SMSFs. From 1 July 2018, the concept of Non Arm's Length Expense (NALE) has also been introduced. The NALI and NALE rules have greater application to SMSFs due to the many related party transactions that can occur.
 
The ATO issued a draft Law Companion Ruling (LCR) 2019/D3 on the application of the new NALE rules for SMSFs, as well as Practical Compliance Guideline (PCG) 2019/D6, which effectively provided a transitional period of application of the new NALE rules in relation to general expenses of an SMSF to 30 June 2020.
 
The ATO is yet to finalise the draft LCR and has announced that the PCG will be extended until 30 June 2021. This webinar will review the draft LCR, the PCG and the implications for SMSFs who engage related parties, as well as what actions SMSFs may need to take when dealing with a related party to ensure that they are not caught by the new NALE rules.
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ACCU Mark Ellem_sml

Meet our guest presenter

Mark Ellem - SMSF Specialist Advisor

Mark provides technical and compliance support on SMSFs to financial advisors, accountants and SMSF trustees. He regularly writes and presents on SMSF related technical and compliance matters.

An accredited SMSF Specialist Advisor with the Self-Managed Super Fund Association, he was awarded the 2018 CEO award in February 2019 for his contribution to the association and was in the inaugural group of association members to advance to the status of Fellow in February 2020. He is also a Fellow of both CPA Australia and the Institute of Public Accountants (IPA), as well as being a Registered Tax Agent.

Mark has spent over 30 years in accounting practices and SMSF administration companies, including running his own accountancy practice and SMSF administration and compliance advice company for ten years.


Disclaimer

This information is provided by Accurium Pty Limited ABN 13 009 492 219 (Accurium). It is factual information only and is not intended to be financial product advice, legal advice or tax advice, and should not be relied upon as such. The information is general in nature and may omit detail that could be significant to your particular circumstances. The information is provided in good faith and derived from sources believed to be accurate and current at the date of publication. While all care has been taken to ensure the information is correct at the time of publishing, superannuation and tax legislation can change from time to time and Accurium is not liable for any loss arising from reliance on this information, including reliance on information that is no longer current. We recommend that you seek appropriate professional advice before making any financial decisions.