Govt to consult on NALI after industry concerns
The Government has announced plans to ensure non-arms length expense provisions operate correctly.
This was designed to prevent superannuation funds from circumventing contribution caps and inflating fund earnings through non-commercial dealings.
To do this, it would consult with industry stakeholders on the appropriate operation of the non-arms length income (NALI) and expense provisions.
This would particularly apply to Australian Prudential Regulation Authority (APRA) regulated super funds.
It said it received concerns from industry stakeholders regarding the interpretation of these provisions by the Australian Taxation Office in a Law Companion Ruling and the implications for APRA-regulated funds and self-managed super funds.
Senator Jane Hume, minister for superannuation, financial services and the digital economy, said: “We have heard the concerns of the industry and will work to amend the law to make sure it operates as intended.
“I’d like to thank all stakeholders that have engaged meaningfully on this issue so far.”
Any changes would apply from 1 July, 2022.
AUTHOR
Laura Dew
Recommended for you
A financial advice firm has been penalised $11 million in the Federal Court for providing ‘cookie cutter advice’ to its clients and breaching conflicted remuneration rules.
Insignia Financial has experienced total quarterly net outflows of $1.8 billion as a result of client rebalancing, while its multi-asset flows halved from the prior quarter.
Prime Financial is looking to shed its “sleeping giant” reputation with larger M&A transactions going forward, having agreed to acquire research firm Lincoln Indicators.
An affiliate of Pinnacle Investment Management has expanded its reach with a London office as the fund manager seeks to grow its overseas distribution into the UK and Europe.
