{"id":1152,"date":"2022-04-21T04:14:17","date_gmt":"2022-04-21T04:14:17","guid":{"rendered":"http:\/\/actinvest.com.au\/?p=1152"},"modified":"2022-04-21T04:14:17","modified_gmt":"2022-04-21T04:14:17","slug":"smsfs-warned-on-nale-uncertainty","status":"publish","type":"post","link":"https:\/\/actinvest.com.au\/index.php\/smsfs-warned-on-nale-uncertainty\/","title":{"rendered":"SMSFs warned on NALE uncertainty"},"content":{"rendered":"<p><em>Heffron says SMSFs still need to be cautious around non-arm\u2019s length arrangements.<\/em><\/p>\n<p><img loading=\"lazy\" alt=\"\" height=\"317\" src=\"https:\/\/acctweb.com.au\/images\/fp-nali.jpg\" width=\"475\" \/><\/p>\n<p><strong>Uncertainty over which SMSF arrangements will still be caught by NALE rules will remain until the legislation is amended, says Heffron technical specialist Lyn Formica.<\/strong><\/p>\n<p><strong>After months of industry lobbying around the NALI\/NALE rules, the government recently announced it will \u201camend the law to ensure it operates as intended\u201d.<\/strong><\/p>\n<p><strong>But Heffron\u2019s head of technical and education services said clarification was needed in the meantime.<\/strong><\/p>\n<p><strong>\u201cGiven the government\u2019s commitment to finding a workable solution whilst still meeting NALI\u2019s policy intent, during the consultation process we would be looking to gain clarity on the types of services which can be provided to SMSFs without triggering a NALI issue,\u201d she said.<\/strong><\/p>\n<p><strong>The amendments would need to identify whether the trustees of the unit trusts in which SMSFs invest can provide services to the trust without causing NALI issues.<\/strong><\/p>\n<p><strong>SMSFs would also need to understand the ATO\u2019s expectations where a fund purchases assets partly for cash and partly in specie.<\/strong><\/p>\n<p><strong>Ms Formica said the amendments should also ensure the penalty for incurring NALE was proportionate to the mischief involved and that there was no NALI risk for funds given the government\u2019s legislative changes were intended to apply from 1 July 2022, but the NALE provisions had application from 1 July 2018.<\/strong><\/p>\n<p><strong>\u201cEarlier this week, we did gain welcome clarity on one issue regarding NALI \u2013 the position for trustees who restructured their related party limit recourse borrowing arrangement in the lead up to 31 January 2017 to comply with PCG 2016\/5,\u201d she said.<\/strong><\/p>\n<p><strong>\u201cThe ATO has now amended PCG 2016\/5 to confirm that the commissioner will not seek to apply the NALI provisions to these arrangements for the 2018-19 and later years.<\/strong><\/p>\n<p><strong>\u201cWhilst the NALI\/NALE story is not yet complete, thanks to the tireless lobbying of the various professional bodies and industry associations, it seems we are now on the path to finding a long-term pragmatic solution.\u201d<\/strong><\/p>\n<p>\u00a0<\/p>\n<p>\u00a0<\/p>\n<p>\u00a0<\/p>\n<p>Reporter<\/p>\n<p>28 March 2022<\/p>\n<p>smsfadviser.com<\/p>\n","protected":false},"excerpt":{"rendered":"<p><em>Heffron says SMSFs still need to be cautious around non-arm\u2019s length arrangements.<\/em><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[4],"tags":[],"_links":{"self":[{"href":"https:\/\/actinvest.com.au\/index.php\/wp-json\/wp\/v2\/posts\/1152"}],"collection":[{"href":"https:\/\/actinvest.com.au\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/actinvest.com.au\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/actinvest.com.au\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/actinvest.com.au\/index.php\/wp-json\/wp\/v2\/comments?post=1152"}],"version-history":[{"count":1,"href":"https:\/\/actinvest.com.au\/index.php\/wp-json\/wp\/v2\/posts\/1152\/revisions"}],"predecessor-version":[{"id":1153,"href":"https:\/\/actinvest.com.au\/index.php\/wp-json\/wp\/v2\/posts\/1152\/revisions\/1153"}],"wp:attachment":[{"href":"https:\/\/actinvest.com.au\/index.php\/wp-json\/wp\/v2\/media?parent=1152"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/actinvest.com.au\/index.php\/wp-json\/wp\/v2\/categories?post=1152"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/actinvest.com.au\/index.php\/wp-json\/wp\/v2\/tags?post=1152"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}