Joint submission on Non-arms length expenses rules
Non-arms length expenses rules joint submission to Senate Standing Committees on Economics
In brief
- Do not endorse the measures contained in Schedule 7 to and recommend its removal from the Bill
- Will result in a ‘two-tiered’ superannuation system
Chartered Accountants Australia and New Zealand, CPA Australia, Institute of Public Accountants, SMSF Association, The Tax Institute welcome the opportunity to provide feedback on the Treasury Laws Amendment (Support for Small Business and Charities and Other Measures) Bill 2023 which was introduced into Parliament on 13 September 2023.
Our comments relate solely to the proposed non-arm’s length expenses rules for superannuation funds contained in Schedule 7 to the Bill. We do not comment on the other parts of the Bill in this submission.
The Joint Bodies do not endorse the measures contained in Schedule 7 to and recommend its removal from the Bill.
The policy proposed to be implemented by Schedule 7 to the Bill aims to alter, rather than eliminate, measures that were put in place to address concerns that are now outdated. This will result in a ‘two-tiered’ superannuation system.
Additionally, the Bill fails to address issues arising from the interplay between the non-arm’s length income provisions and the NALE framework for superannuation funds and specific expenses.
Related download
Non-arms length expense rules for superannuation funds submission
CA ANZ does not endorse the measures contained in the exposure draft. We propose a more effective long-term solutions.
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Current NALI provisions have been the source of considerable concern for the superannuation sector since their amendment in 2019
Read moreDraft Taxation Determination TD 2023/D1
Joint associations request that the ATO not finalise this draft Tax Determination until the law has been settled on NALI/E
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