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

Pending changes to contribution rules being considered by the ATO could factor in a fix for the problems with the NALE provisions presented by the superannuation industry.

A resolution to industry concerns around NALE has taken too long and raises questions as to the aims of the provisions.

The consensus among a panel of SMSF specialists is for fund trustees to apply an ultra-conservative approach to the NALE rules.

An expansion of access to employee share schemes puts more weight behind the need for clarity in the operation of non-arm’s-length expenditure rules.

Plans to ensure the NALE and NALI provisions do not have unintended consequences have been welcomed, but the outcome for SMSFs requires more detail.

The federal government has responded to concerns about the impact of non-arm’s-length expense provisions and will move to ensure they do not go further than intended.

Having an SMSF participate in an employee share scheme may not automatically trigger the NALI provisions should an acquisition discount be involved.