The ATO has confirmed that its current administrative approach to the non-arm’s length expenditure (NALE), as set out in Practical Compliance Guide PCG 2020/5, will be extended to 30 June 2023. That is, the ATO will not allocate compliance resources to determine whether the non-arm’s length income (NALI) rules apply to any general expenses incurred by a super fund, where that general expense is incurred prior to 30 June 2023.

It should be noted that the administrative approach does not apply to expenses which have a nexus to the a particular asset of a super fund.

This is a welcome announcement while the superannuation industry awaits the proposed law change that was announced by the previous Coalition Government and will hopefully be enacted by the new Labor Government.

Phil Broderick
Principal
M +61 419 512 801 | T +61 3 9611 0163
E: pbroderick@sladen.com.au

Philippa Briglia
Senior Associate
T +61 3 9611 0173
E pbriglia@sladen.com.au