Non-Arm’s Length Income (NALI)

Multiple employer SG opt-out, NALI expenses, LRBA in Total Super Balance pass Parliament

A collection of changes to superannuation – including a limited and partial Super Guarantee opt-out, and changes to NALI and LRBAs – have passed the Parliament. The Treasury Laws Amendment (2018 Superannuation Measures No. 1) Bill 2019 has passed the Parliament, without amendment. It allows some employees with multiple employers… Read More »Multiple employer SG opt-out, NALI expenses, LRBA in Total Super Balance pass Parliament

ATO warns about 31 January deadline for arm’s length LRBAs

The ATO has reminded SMSF trustees and professionals about the 31 January 2017 deadline to ensure Limited Recourse Borrowing Arrangements (LRBAs) are on an arm’s length basis. #SMSF trustees: Have you reviewed non-arm’s length LRBAs? Don’t forget the deadline is 31 January. Learn more at https://t.co/CaQf7YilBR pic.twitter.com/zXu0FU6wwI — ato.gov.au (@ato_gov_au)… Read More »ATO warns about 31 January deadline for arm’s length LRBAs

ATO issues new ruling on LRBA non-arm’s length income: TD 2016/16

The ATO has issued a new Taxation Determination, TD 2016/16, setting out when a non-arm’s length Limited Recourse Borrowing Arrangement could result in Non-Arm’s Length Income. The ATO has also withdrawn two earlier Interpretative Decisions, ATO ID 2015/27 and ID 2015/28, which dealt with Non-Arm’s Length Income (NALI), as “issue is… Read More »ATO issues new ruling on LRBA non-arm’s length income: TD 2016/16

Safe harbour provision for low interest rate SMSF LRBAs

safe harbour, Non-Arm's Length Income (NALI), low interest, zero interest, SMSF borrowing, LRBAsIn order to remove uncertainty surrounding low, or zero, interest rate LRBAs and the non-arm’s length income rules the Government should create a safe harbour provision.

It is unclear where the idea for 0% interest rate LRBA started, through the June 2012 meeting of the superannuation technical National Tax Liason Group was likely a key point. In this meeting the ATO was asked if zero interest rate LRBAs would breach the borrowing rules. The answer was no, but the minutes do not record if the discussion included consideration of the Non-Arm’s Length Income (NALI) rules.

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