SMSF members will not be able to recast undervalued assets in their fund as a member contribution and will face the full impact of NALE without documentation.

The provision of pro bono services to an SMSF is not automatically outlawed by the NALE rules as defined by the ATO in LCG 2012/2.

Detailed analysis of a situation where an SMSF trustee provides a service to their fund without charge is required to discover if the NALE rules have been triggered.

Trustees have been provided with guidance as to what might constitute an appropriate service fee that will satisfy the non-arm’s-length expenditure rules.

The NALE rules will only apply to SMSF administration service discounts that have been selectively applied to some staff within an organisation.