The government’s NALE solution addresses a problem that no longer exists and could be easily fixed by an amendment to the SIS Act.

The proposed method to address breaches of the NALE provisions with very high taxes is too excessive and would create a new precedent for tax penalties.

The current tax penalty regime can address breaches of the NALE provisions without the outsized penalty model put forward by the government.

The NALE model put forward by the government lacks important details and will be hard to implement at the trustee level.

A government proposal to deal with NALE breaches is excessive and will create an uneven tax environment in superannuation.

The government has proposed that NALE breaches be ring-fenced and tax penalties applied only to any advantages gained within a fund.

It remains unclear how the end result of a transaction will determine how the non-arm’s-length expenditure rules will be applied.