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.

The tax treatment of the capital gain associated with an SMSF asset that has been tainted by NALI for only part of its fund life remains unknown.