The Association of Superannuation Funds of Australia has welcomed amendments to the way the non arm’s length expense (NALE) rules apply to large superannuation funds, passed by Parliament yesterday. 

The NALE rules were introduced in 2019, on top of an older integrity measure designed to prevent income being diverted into superannuation funds to benefit from lower rates of tax compared to other entities – particularly the marginal rates applying to individual taxpayers. 

Following the passage yesterday of the Treasury Laws Amendment (Support for Small Business and Charities and Other Measures) Bill) 2023, large superannuation funds (which excludes self-managed superannuation funds and small APRA-regulated funds) will be fully exempted from the NALE rules. 

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