A relaxation of rules around borrowing in self-managed superannuation funds (SMSFs) nearly a decade ago now means that SMSFs can borrow to invest in some circumstances. Although loans were originally allowed for borrowing to invest in shares, restrictions around the rules mean that in most cases they are now used for ... Read more
Non-arms length income (NALI)
NALI refers to income that does not reflect a commercial arm’s length transaction. An arm’s length transaction is done at commercial market values.
Self-managed super funds (SMSFs) can be potentially vulnerable to earning non-arm’s length income if they conduct transactions among fund members or their related parties that don’t reflect current market values. SMSFs can lose their concessional tax treatment if they receive non-arm’s length income.
Set out below are all SuperGuide articles that relate to Non-arms length income (NALI).