SMSF trustees provided services in a unit trust may be breaching NALE provisions and should consider using third parties to act for them.

A proposed amendment to the contribution rules with regard to non-arm’s-length expenditure will have a significant negative impact on SMSFs.

SMSF advisers have been warned not to take an aggressive stance with LRBA interest rates involving related parties to avoid invoking the NALI rules.

Concerns about the NALE rules as they currently stand and the associated penalties are now being expressed by the entire superannuation industry.

Three key principles put forward by the superannuation industry could produce a positive outcome in dealing with non-arm’s-length expenditure provisions.

Discussions regarding the enforcement of the NALE rules from 1 July 2022 onwards are continuing, with 13 industry bodies presenting a united voice.

Several potential changes to the non-arm’s-length expenditure rules can be identified based on the recommendations put forward by industry stakeholders.