SMSF Association Submission – Joint Submission – Treasury Laws Amendment (Measures for Consultation) Bill 2023: Non-arm’s length expense rules for superannuation funds

SMSF Association Submission

We appreciate the opportunity to provide feedback on the exposure draft legislation (the exposure draft) released on 19 June 2023 regarding the non-arm’s length expenses (NALE) rules for superannuation funds.

Chartered Accountants Australia and New Zealand, CPA Australia, Institute of Public
Accountants, SMSF Association, and The Tax Institute do not endorse the measures
contained in the exposure draft.

Poorly designed laws can result in unfair outcomes. In addition to creating a ‘two-tiered’ superannuation sector, the proposed policy attempts to modify, rather than remove, measures which are in place to address concerns that are no longer relevant. Further, we note that the exposure draft does not address the complex issues created by the interaction of the non-arm’s length income (NALI) and NALE framework in place for superannuation funds and specific expenses. Attachment 1 to this submission outlines a number of issues requiring clarification.

Read the full submission below.

Treasury Laws Amendment (Measures for Consultation) Bill 2023: Non-arm’s length expense rules for superannuation funds (Exposure Draft)

SMSF Association Submission