NALE has SMSF tax consequences

Fact Sheet: SMSF Compliance & NALI

The final ruling on non-arm’s length expenses (NALE) forces SMSFs to transact on an arm’s length basis or face serious tax consequences. Getting it wrong can mean that all fund income is taxed at the highest marginal tax rate, a disastrous outcome for those SMSFs who ignore NALE at their peril.