What are the main NALI issues challenging SMSF advisers the most at the moment?
What is one of the common mistakes advisers usually make in relation to NALI?
A common mistake is that a Fund receives a significant profit from an investment but documentation has not been obtained to support that the transaction was maintained on an arm’s length basis. Trustees should ensure that their investments are consistent with those that would have been made on an arm’s length basis.
What are some of the big trends and developments you see ahead in this area?
The NALI rules have had a large focus in relation to LRBA’s where there are related parties that have provided the finance. It will be essential to ensure that related LRBA’s are being conducted in accordance with the rules.
Your topic will be focusing on ‘Non Arm’s Length Income Rules’. What do you see are some of the key takeaways and benefits for SMSF practitioners and their practice from attending your session?
The key will be to ensure that when a Fund transacts with a related party that advice is obtained from the outset. Documentation should be obtained to clearly support that the transaction was maintained on an arm’s length basis. The documentation will help to show the ATO that an arm’s length basis transaction has occurred if the Fund is ever reviewed.
Rohan Mansfield has been in public practice since 1990, and is a Principal at LDB Superannuation Services in Blackburn, Melbourne. The firm has 450 Self-Managed Superannuation Funds and he provides consulting and accounting services to these Funds. Rohan specialises in assisting Trustees of Self-Managed Superannuation Funds in dealing with compliance issues including in relation to investments, contributions and pensions. . You can connect with Rohan via email RMansfield@LDB.com.au.