The ATO has adopted an extremely broad view on what is NALI. There is also the potential for certain amounts to be both NALI and a contribution. The ATO are still consulting on the difference between what might be NALI versus a contribution. There is now currently considerable uncertainty on many common place strategies which we will seek to clarify. This presentation provides an overview of:
- NALI/NALE - the key risks and latest developments
- NALE with specific expense versus general expense nexus
- What can a trustee do without invoking NALI
- The ATO's latest views on what is a contribution versus NALI (consultation draft ruling TR 2010/1-DC)
- SMSF purchase 50% of business real property from a related party and the related party contributes the remaining 50%
- What documentation is required to minimise risk.