Hardline non-arm’s length expenses approach for SMSFs

The ATO have released Law Companion Ruling LCR 2021/2 which is the finalised version of their draft 2019 ruling “non-arm’s length income – expenditure incurred under an non-arm’s length arrangement”.  It’s fair to say the ruling has the capacity to impact many SMSFs if they don’t change existing practices around fees and asset transfers, as well as other fund expenses, and so it’s critical that SMSF professionals have a clear picture of how the ATO interpret the law so they can advise clients accordingly.  In addition, the ATO have released a draft of their amended contribution ruling that complements the LCR so they have consistency across their publications.

This webinar will contemplate the final ruling and the key impact points for SMSFs with an emphasis on identifying the capacity under which certain activities are undertaken, the extent trustees will need to go to establish commerciality and the future of fee discounting.  We will also delve into the impact the ruling will have on how trustees approach asset transfers under the related party acquisition exception rules.  To round things out we will also highlight how non-arm’s length expenses will impact either ordinary or statutory income or both subject to the nature of the expense, and whether there is any light at the end of the tunnel for a fund that inadvertently does the wrong thing.


Learning Outcomes:


At the end of this webinar, participants will have an appreciation for:

  • Fund members acting in their individual or trustee capacity
  • The impact of NALE on in specie asset transfers
  • How NALE impacts ordinary and statutory income
  • Remedies to ensure non-arm’s length expenses don’t impact a fund

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Presenter: Tim Miller

Cost: FREE

Date: 26 October

Date: 12:30 PM – 01:30 PM AEST

Accredited CPD Education

SuperGuardian’s education activities are assessed against the SMSF Association’s professional education standards. Being recognised as an SMSF Association Accredited Educator enables us to work closely with the Association in lifting the standards of professional SMSF advice and services through quality SMSF education.


Tim Miller

Education Manager

Tim Miller is one of Australia’s leading SMSF educators and presenters with over 23 years’ experience in the Superannuation industry.  His experience has been gained through providing legislative and compliance support to thousands of Trustees, Accountants and Financial Planners since joining the SMSF sector in 1999.  In addition to servicing the needs of SMSF clients, his practical and personable approach to compliance has made him a much sought after presenter.

Tim regularly presents at the major SMSF conferences and events, contributes to various trade and general publications and is the author of one of the subjects of the SMSF Association Graduate Certificate delivered through the University of Adelaide and Kaplan, which has also been adopted as part of the CA ANZ SMSF specialist program.

Tim is an SMSF Association Specialist Adviser.