Issue 42 of selfmanagedsuper examines the current status of the non-arm’s-length expenditure rules along with a government proposal to make new changes to the franked dividend system that will have significant ramifications for the SMSF sector. Our regular contributors look at a range of topical issues, including the current areas of compliance focus for the ATO, industry concerns about the proposed $3 million super earnings tax and strategies for dealing with legacy pensions and holding risk insurance inside an SMSF.