NALI Legislation – Introduced to parliament
The Treasury Laws Amendment (Support for Small Business and Charities and Other
Measures) Bill 2023 was introduced into Parliament.
This Bill contains the previously proposed amendments to the non-arm’s length expense (NALE)
rules and is substantially unchanged from the exposure draft.
Where NALE arises with respect to a “general expense” the amount of NALE will be
calculated as twice the difference between an arm’s length and non-arm’s length expense,
including where the entity did not incur any expense.
Two important changes made from the exposure draft consultation:
- Once legislated, the NALE measures will apply to expenses incurred from 1 July 2018,
rather than from 2023-2024 financial year as previously proposed. - The exclusion of general expenses of a capital nature has been removed, ensuring that all
fund general
expenses are treated consistently.