Live Webinar: SMSFs and NALE That Triggers NALI – Let's Get Specific

The proposed amendments to the non-arm’s length expense (NALE) provisions have softened the tax consequences for expenses of a “general” nature. However, there is no such luck for NALE of the “specific” kind. This session delves into the types of specific expenses that can be caught under the NALE rules and the consequences that can follow, including:

• The distinction between a fund expense being “general” or “specific””
• How a specific NALE impacts on a fund’s tax payable
• The importance of determining the capacity services are provided by a trustee who also conducts a business providing those services
• Can an in-specie contribution adjustment be used to prevent the NALE provisions applying?
• Does refinancing a limited recourse borrowing arrangement from non-arm’s length to arm’s length avoid triggering NALI?
• How NALE can impact on future capital gains tax consequences for a CGT asset, including:
  • how the market value substitution rule applies
  • whether a NALE breach regarding a CGT asset can be rectified in a later year to avoid NALI on a future capital gain
• Tips to avoid the NALE provisions applying to an SMSF’s business real property acquisition from a member or related party
• Practical examples