penalties for underreported expenses


The non-arm's length income (NALI) provisions have been re-written to include situations where expenses of an SMSF are reduced in order to obtain a non-commercial benefit.

This law strengthens rules which were previously only released as guidance by the ATO for SMSFs. Specifically, an income tax liability will be enforced as opposed to previous interpretations of tax and super regulations in relation to super fund borrowings.

ATO guidance and rulings has provided further situations where an SMSF may have underreported non-arm's length expenditure, including where it may apply to all income of the fund.

ATO guidance and rulings has provided further situations where an SMSF may have underreported non-arm's length expenditure, including where it may apply to all income of the fund.

Source: ATO LCR 2021/2; ATO PCG 2020/5; Treasury Laws Amendment (2018 Superannuation Measures No. 1) Bill 2019

Please feel free to contact your RCB Advisors’ team member for any further assistance



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Financial Planning

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Financial Planning
RCB Wealth Advisors
RCB Wealth Advisors Pty Ltd

PO Box 439, Camberwell 3124
VICTORIA, Australia

+61 3 9882 0533
vasb@eponqivfbef.pbz.nh

RCB Wealth Advisors Pty Ltd (ABN 66 611 164 491) is a Corporate Authorised Representative (No. 1240230) of Capstone Financial Planning Pty Ltd. ABN 24 093 733 969. Australian Financial Services Licence No.223135.