Our submission on the NALE rules for super funds
On 7 July 2023, the Institute of Financial Professionals Australia (IFPA) provided its submission on the non-arm’s length expense (NALE) rules for superannuation funds. Although the proposed legislative changes to the NALE rules are an improvement to the initial proposal to tax…
On 7 July 2023, the Institute of Financial Professionals Australia (IFPA) provided its submission on the non-arm’s length expense (NALE) rules for superannuation funds. Although the proposed legislative changes to the NALE rules are an improvement to the initial proposal to tax NALE at a rate of 225% (ie, a five times multiple), we continue to oppose the concept of a multiple. We believe that a two times multiple approach which leads to an effective tax rate of 90% is not the correct way to deal with a general expense breach. Our view is that other changes should be made to the law to deal with non-arm’s length dealings.
Our submission and proposed range of alternative measures can be read here:
