SMSFA – Senate Standing Committees on Economics_Treasury Laws Amendment Treasury Laws Amendment (Support for Small Business and Charities and Other Measures) Bill 2023, Schedule 7: Non-arm’s length expense of superannuation funds

The SMSF Association welcomes the opportunity to provide this submission in response to Treasury
Laws Amendment (Measures for Consultation) Bill 2023, Schedule 7: Non-arm’s length expense of superannuation funds. Successive amendments to the non-arm’s length income rules in relation to
non-arm’s length expenses has created significant complexity, uncertainty, and unintended
consequences.

The amendments contained in this schedule only address part of the problem, addressing only general fund expenses. There are many issues with the way the 2019 non-arm’s length expenditure (NALE) provisions apply to specific fund investments, which are not addressed by these amendments. Significant issues also remain with the operation of the non-arm’s length rules with respect to capital assets and associated capital gains.

Read the full submission below.