Treasury has recently consulted on proposed changes to the non-arm’s length income/expense provisions in the Income Tax Assessment Act 1997. This consultation follows an announcement by the government as part of the Federal Budget 2023–24.

The final form of the non-arm’s length income/expense rules is currently unknown, given that they are likely to be amended.

The Joint Associations made up of Chartered Accountants Australia and New Zealand, CPA Australia, Institute of Public Accountants, SMSF Association, and The Tax Institute therefore request that the ATO not finalise this draft Tax Determination until the law has been settled.

If necessary, we request that after the non-arm’s length income/expense provisions have been settled, the ATO republish the draft Tax Determination with suitable amendments as a revised draft before it is finalised.