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.

The non-arm’s-length expenditure rules as defined by LCR 2021/2 are not confined exclusively to related-party transactions.

The provision of pro bono services to an SMSF is not automatically outlawed by the NALE rules as defined by the ATO in LCG 2012/2.

Trustees have been provided with guidance as to what might constitute an appropriate service fee that will satisfy the non-arm’s-length expenditure rules.