POWERED BY MOMENTUM MEDIA
Govt to consult on NALI after industry concerns
The Government has announced plans to ensure non-arms length expense provisions operate correctly.
This was designed to prevent superannuation funds from circumventing contribution caps and inflating fund earnings through non-commercial dealings.
To do this, it would consult with industry stakeholders on the appropriate operation of the non-arms length income (NALI) and expense provisions.
This would particularly apply to Australian Prudential Regulation Authority (APRA) regulated super funds.
It said it received concerns from industry stakeholders regarding the interpretation of these provisions by the Australian Taxation Office in a Law Companion Ruling and the implications for APRA-regulated funds and self-managed super funds.
Senator Jane Hume, minister for superannuation, financial services and the digital economy, said: “We have heard the concerns of the industry and will work to amend the law to make sure it operates as intended.
“I’d like to thank all stakeholders that have engaged meaningfully on this issue so far.”
Any changes would apply from 1 July, 2022.
AUTHOR
Laura Dew
Laura Dew is editor at Super Review. Prior to joining SR, she spent five years working at Investment Week in the UK covering asset and wealth management.
Recommended for you
Super funds had a “tremendous month” in November, according to new data.
Australia faces a decade of deficits, with the sum of deficits over the next four years expected to overshoot forecasts by $21.8 billion.
APRA has raised an alarm about gaps in how superannuation trustees are managing the risks associated with unlisted assets, after releasing the findings of its latest review.
Compared to how funds were allocated to March this year, industry super funds have slightly decreased their allocation to infrastructure in the six months to September – dropping from 11 per cent to 10.6 per cent, according to the latest APRA data.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
61.07 3 y p.a(%)
2
Spire Oaktree Opportunities XI First Close USD
59.21 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.73 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
30.15 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
26.71 3 y p.a(%)
