Revised start dates for super and related measure (including NALI)

1.       General expenses NALI extended moratorium

The ATO has issued PCG2020/5 to extend its transitional compliance approach to general expenses NALI.  The transitional period will be three years (instead of the previous two years) including 2018-19, 2019-20 and 2020-21 financial years.  The new commencement date for general expenses NALI will be 1 July 2021.

The application of general expenses NALI is also pending finalisation of the ATO LCR 2019/D3.

The commencement date for specific expenses NALI on 1 July 2018 remains unchanged.  Specific expenses NALI refers to NALE that can be attributed to specific income amounts of the fund.  For example, non-arm’s length property management expenses that can be related directly to specific amounts of ordinary and statutory income derived by the SMSF from the property is specific expenses NALI.

For further information on the new NALI, refer to the SUPERCentral article "NALI – Non arm’s length income new rules and implications" - click here.

2.       Measure to increase maximum number of allowable members in SMSF and small APRA funds (from four to six)

The start date has been revised from 1 July 2019 to Royal Assent of the enabling legislation.

3.       Measure to streamline ECPI (exempt current pension income) calculation.

This measure proposed to remove deemed segregation where a fund is solely in retirement phase.  The start date has been revised from 1 July 2020 to 1 July 2021.

4.       Targeted amendments to Division 7A

This measure is an integrity rule to simplify company Division 7A loans by revising the maximum loan duration to a 10-year model instead of 25 years with modified benchmark interest rates.

The start date has been revised from 1 July 2020 to income years commencing on or after the date of Royal Assent of the enabling legislation.