Australia: Changes to non-arm’s length income provisions for superannuation funds
The changes became effective July 1, 2024, and apply from July 1, 2018.
The changes became effective July 1, 2024, and apply from July 1, 2018.
Following passage of the Treasury Laws Amendment (Support for Small Business and Charities and Other Measures) Act 2024, the Australian Taxation Office (ATO) outlined the changes to the non-arm's length income (NALI) provisions applicable to superannuation funds.
The changes, which became effective July 1, 2024, and apply from July 1, 2018:
- Limit the amount of NALI arising from a non-arm's length general expense for small Australian Prudential Regulation Authority (APRA) regulated funds to twice the difference between the actual expense and the expected market rate of the expense
- Exempt large APRA-regulated funds from the non-arm's length expenditure (NALE) provisions for both general and specific expenses of the fund, and confirm the remaining NALI rules continue to apply
- Exempt the application of the NALE provisions, as amended by the Act, for expenditure that occurred prior to the 2018–2019 income year
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