Super tax consultation underway

Treasury has released a consultation paper covering two key super tax measures – limited recourse borrowing arrangements (LRBA) and non-arm’s-length income (NALI) – to support the integrity of the federal government’s suite of super reforms.

The consultation paper explains how a member’s share of the outstanding balance of an LRBA in their total super balance is intended to operate, as well as ensuring non-arm’s-length expenditure is taken into account when determining whether NALI taxation rules apply to a transaction.

Industry feedback has been requested for the two measures in terms of whether they meet their policy objectives, whether their objectives could be achieved in some other way, and what may be the unintended consequences of the measures.

The closing date for submissions is 9 February.

The consultation paper is intended to be read in conjunction with the exposure draft legislation and draft explanatory memoranda for those two measures.

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