The government has put forward a solution that NALE breaches be ring-fenced and tax penalties only applied to any advantages gained.

It has been confirmed the new Labor government has been notified about the flaws in the non-arm’s-length expenditure legislation.

Concerns about the NALE rules as they currently stand and the associated penalties are now being expressed by the entire superannuation industry.

The consensus among a panel of SMSF specialists is for fund trustees to apply an ultra-conservative approach to the NALE rules.

An expansion of access to employee share schemes puts more weight behind the need for clarity in the operation of non-arm’s-length expenditure rules.

The federal government has responded to concerns about the impact of non-arm’s-length expenditure provisions and will move to ensure they do not go further than intended.