This session provides an in-depth exploration of recent developments in Non-Arm’s Length Income (NALI) and Non-Arm’s Length Expenditure (NALE) provisions, focusing on their practical implications for superannuation funds. Key topics include:
- Overview of TD 2024/5, previous industry approaches, and insights from LCR 2021/2
- Interaction between NALI and CGT provisions and tainting of arm’s length capital gains (Example 3 in TD 2024/5)
- Use of capital losses to offset tainted gains and issues with wash sales
- Tainted gains arising from the provision of non-trustee type services (Example 9 in LCR 2021/2); and
- Changes in ATO’s approach between TR 2010/1 and TR 2010/1-DC in relation to NALE and contributions and the ATO’s prevailing view.