It remains unclear how the end result of a transaction will determine how the non-arm’s-length expenditure rules will be applied.

The federal budget must address superannuation reforms, including NALI, and simplify the system to reduce complexity and cost.

It has been confirmed the new Labor government has been notified about the flaws in the non-arm’s-length expenditure legislation.

The NALE provisions regarding general expenditure may not be as severe as first thought due to details regarding these items in the ATO’s ruling.

Superannuation advisers have been urged to take a more proactive stance on the non-arm’s-length expenditure law to expedite a satisfactory solution.

SMSF investments in fixed unit trusts may not be able to avoid the non-arm’s-length income provisions due to the underlying assets involved.