{"id":1493,"date":"2023-02-27T05:17:07","date_gmt":"2023-02-27T05:17:07","guid":{"rendered":"https:\/\/actinvest.com.au\/?p=1493"},"modified":"2023-02-27T05:17:07","modified_gmt":"2023-02-27T05:17:07","slug":"no-plans-to-extend-nali-compliance-relief-says-ato","status":"publish","type":"post","link":"https:\/\/actinvest.com.au\/index.php\/no-plans-to-extend-nali-compliance-relief-says-ato\/","title":{"rendered":"No plans to extend NALI compliance relief, says ATO"},"content":{"rendered":"<p><strong>The ATO says it does not intend to extend PCG 2020\/5 for another year and will wait to see what changes the government legislates.<\/strong><\/p>\n<p><img loading=\"lazy\" alt=\"\" height=\"317\" src=\"https:\/\/acctweb.com.au\/images\/fp-nali-extend.jpg\" width=\"475\" \/><\/p>\n<p>.<\/p>\n<p>Late last month, Treasury released some proposals for\u00a0amending the non-arm\u2019s length income provisions in relation to expenses of a general nature.<\/p>\n<p>Treasury has proposed that SMSFs would be subject to a factor-based approach wherein the maximum amount of income taxable at the highest marginal rate would be set at five times the level of the general expenditure breach.<\/p>\n<p>Following the release of proposed amendments, calls from industry have emerged for the ATO to extend the transitional relief provided through PCG 2020\/5 for general expenses for a further year.<\/p>\n<p>With the amendments unlikely to be legislated ahead of 30 June 2023, the Tax Institute and DBA Lawyer\u2019s director Daniel Butler said an extension to PCG 2020\/5 would be appropriate to ensure funds have time to prepare.<\/p>\n<p>Speaking at the SMSF Association National Conference, ATO deputy commissioner, superannuation and employer obligations Emma Rosenzweig was asked whether the ATO would consider extending the transitional relief past 30 June if there isn\u2019t a legislative fix implemented by then.<\/p>\n<p>Ms Rosenzweig said the ATO does not intend to extend PCG 2020\/5 beyond 30 June this year for SMSFs.<\/p>\n<p>\u201cIt\u2019s been in place for a number of years already and the PCG has never been about an interpretation of the law, we\u2019ve always had a clear position on how the law operates.\u201d<\/p>\n<p>\u201cI understand there have been concerns raised and that&#039;s what&#039;s being consulted on, about whether that&#039;s the right policy, but it is what the law currently says.\u201d<\/p>\n<p>Ms Rosenzweig said trustees have had a number of years to understand what the rules are and how they should be applied.<\/p>\n<p>\u201cSo, we\u2019re not intending to extend it.\u201d<\/p>\n<p>Industry has already raised a\u00a0number of concerns about the proposed amendments to the non-arm\u2019s length income provisions, with some professionals fearing it will do nothing to alleviate red tape.<\/p>\n<p>Industry associations have highlighted that the proposed measures would effectively create a tax rate of 225 per cent to any discount on a non-arm\u2019s length expense, even where it\u2019s a relatively minor breach.<\/p>\n<p>The SMSF Association also expressed concerns about the application of a different tax treatment for SMSFs versus APRA-regulated super funds.<\/p>\n<p>\u201cIt is also our position that tax neutrality across the superannuation industry should be maintained,\u201d said SMSF Association deputy chief executive Peter Burgess previously.<\/p>\n<p>\u00a0<\/p>\n<p>\u00a0<\/p>\n<p>\u00a0<\/p>\n<div>\n<div>\n<div>Miranda Brownlee<\/div>\n<\/div>\n<\/div>\n<div>\n<div>24 February 2023<\/div>\n<div>smsfadviser.com<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p><strong>The ATO says it does not intend to extend PCG 2020\/5 for another year and will wait to see what changes the government legislates.<\/strong><\/p>\n","protected":false},"author":1,"featured_media":1494,"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\/1493"}],"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=1493"}],"version-history":[{"count":1,"href":"https:\/\/actinvest.com.au\/index.php\/wp-json\/wp\/v2\/posts\/1493\/revisions"}],"predecessor-version":[{"id":1495,"href":"https:\/\/actinvest.com.au\/index.php\/wp-json\/wp\/v2\/posts\/1493\/revisions\/1495"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/actinvest.com.au\/index.php\/wp-json\/wp\/v2\/media\/1494"}],"wp:attachment":[{"href":"https:\/\/actinvest.com.au\/index.php\/wp-json\/wp\/v2\/media?parent=1493"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/actinvest.com.au\/index.php\/wp-json\/wp\/v2\/categories?post=1493"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/actinvest.com.au\/index.php\/wp-json\/wp\/v2\/tags?post=1493"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}