From 1 July 2021, if a non-arm’s-length capital gain is made by a segregated current pension asset on or after 1 July 2021, it will be treated as non-arm’s length income (“NALI”), meaning that it will be taxed at the highest marginal rate of 45% under section 295-550 of the Income Tax Assessment Act 1997 (“ITAA97”).
NALI
ATO concerns with SMSF property development
The ATO has issued SMSFRB 2020/1 (“SMSFR”) to highlight its main concerns in relation to SMSF property development.
Can rent relief granted by a landlord SMSF amount to a breach of superannuation law?
Donald and Melania have an SMSF that owns several properties.
SMSF landlords and offering rent relief
A hot topic for SMSF trustees during the COVID-19 crises is whether SMSF trustees that hold land can offer rent relief to their tenants, in particular to related tenants, without breaching the superannuation laws.
New NALI rules and implications for SMSFs
The new NALI provisions have been passed by Parliament and received Assent on 2 October 2019. The new rules are complex and many SMSFs may have to reorganise due to the introduction of the non-arm’s length expenses (NALE) segment. This article provides information on the new rules, implications, interpretation issues and strategies going forward.