News : NALI/NALE

NALI/NALE, Tax

NALI penalises all capital gains

Non-arm’s length income NALI Capital gains SMSF Self-managed superannuation IFPA Natasha Panagis

An example included in TD 2024/5 has shown how the NALI provisions can affect all SMSF capital gains realised in a particular income year.

read more
NALI/NALE

NALI capital gain offsets need care

Non-arm’s length expenditure NALE non-arm’s length income NALI Capital gains SMSF Self-managed superannuation Accurium Mark Ellem

SMSFs must exercise great care when they are looking to offset a capital gain on a NALI-tainted asset with a capital loss.

read more
Compliance, NALI/NALE, Trusts

Trust services could bring NALI scrutiny

Unit trusts NALI Non-arm's length income Related party

Contracting a related party to perform services on a unit trust with SMSF investors may expose the trustees to significant NALI risks.

read more
Compliance, NALI/NALE

NALI breaches remain unfixable

SMSF Self-managed superannuation NALI Non-arm's length income ATO

The ATO’s strict stance on NALI breaches leaves SMSF trustees with no way to rectify or fix honest mistakes without facing penalties.

read more
NALI/NALE, Tax

Capital losses can offset NALI liability

Non-arm's length income NALI Capital loss Capital gains tax TD 2024/5 SMSF Self-managed superannuation

Analysis of ATO guidance has identified how an SMSF could potentially use significant capital losses to reduce a NALI tax liability.

read more
Legislation, NALI/NALE, SMSFA

NALE laws create new cap

NALE NALC non-arm’s-length component non-arm’s-length expenditure SMSF Association Peter Burgess Taxable income Superannuation guarantee

The NALE laws have introduced a new cap that limits the application of penalties to ensure they do not exceed an SMSF’s taxable income.

read more
ATO, Compliance, NALI/NALE, Regulation

No need for exact arm’s-length fee

ATO Non-arm's-length expenditure LCR 2021/2

SMSF trustees do not need a detailed breakdown of arm’s-length fees for any service charged to the fund, but will need to make a reasonable attempt to determine that figure.

read more
ATO, NALI/NALE

ATO retains NALI nexus to CGT

ATO non-arm's-length income NALI capital gains tax CGT Tax Determination SMSF Association

The ATO will continue to view all capital gains in an SMSF as NALI where some of it has been the result of non-arm’s-length dealings.

read more
NALI/NALE, Tax

Fund income can reduce NALE hit

NALE Non-arm's length expenditure Taxable income

SMSF practitioners looking at how to apply the new NALE rules should keep in mind the level of taxable income in a fund can reduce the impact of any tax penalties.

read more
NALI/NALE

NALE rules of limited significance

non-arm’s length expenditure non-arm’s length income NALI NALE materiality Treasury Laws Amendment (Support for Small Business and Charities and Other Measures) Act 2023 SMSF Alliance David Busoli

The newly implemented NALE rules should not overly concern advisers and trustees as their application will not be considered where reasonable efforts are made to avoid breaching them.

read more

Copyright © SMS Magazine 2025

ABN 80 159 769 034

Benchmark Media

WordPress website development by DMC Web.