The Government has announced plans to ensure non-arms length expense provisions operate correctly.
This was designed to prevent superannuation funds from circumventing contribution caps and inflating fund earnings through non-commercial dealings.
To do this, it would consult with industry stakeholders on the appropriate operation of the non-arms length income (NALI) and expense provisions.
This would particularly apply to Australian Prudential Regulation Authority (APRA) regulated super funds.
It said it received concerns from industry stakeholders regarding the interpretation of these provisions by the Australian Taxation Office in a Law Companion Ruling and the implications for APRA-regulated funds and self-managed super funds.
Senator Jane Hume, minister for superannuation, financial services and the digital economy, said: “We have heard the concerns of the industry and will work to amend the law to make sure it operates as intended.
“I’d like to thank all stakeholders that have engaged meaningfully on this issue so far.”
Any changes would apply from 1 July, 2022.
BlackRock boss Larry Fink praised Australia’s superannuation system in his annual chairman’s letter.
The prudential regulator has announced it will publish new expenditure data of superannuation funds, providing details on expenses like advice, director remuneration, and payments to unions.
Affirming the UK’s growing attractiveness as an investment destination, a number of Australia’s largest investors recently joined the UK Foreign Secretary for an exclusive briefing in Canberra to discuss further opportunities for trade and growth.
The specialist superannuation law advisory practice is set to wind up, with managing partner Jonathan Steffanoni planning to bring a new offering to market.
Add new comment