Superannuation Non-Arm’s Length Income Rules

The introduction of the non-arm’s length expenditure (NALE) rules, and the ATO’s interpretation of these rules, as published in the recently finalised Law Companion Ruling LCR 2021/2, will have far reaching and, it is submitted, significant harmful consequences; it is difficult to imagine that such outcomes were intended. These rules apply with effect from 1 July 2018, including with respect to income derived as a result of an arrangement entered into prior to that date.


Submission prepared by:

The Joint Bodies

(Chartered Accountants Australia and New Zealand, Corporate Tax Association, CPA Australia, Institute of Public Accountants, Law Council of Australia and The Tax Institute)

Submitted to:

Minister for Superannuation, Financial Services and the Digital Economy

For more information, contact:

Andrew Mills
Director, The Tax Institute
02 8223 0005

Published: 3 September 2021

  • Superannuation