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Non-arm's length income changes for superannuation funds

The government has announced changes to the non-arm's length income provisions applying to superannuation funds.

Last updated 2 October 2023

On 9 May 2023, as part of the 2023–24 Budget, the Australian Government announced it will amend the non-arm's length income (NALI) provisions which apply to expenditure incurred by superannuation funds.

This measure is not yet law.

The Bill was introduced on 13 September 2023 and will:

  • limit the amount of non-arm's length income arising from a general non-arm's length expense for self-managed superannuation funds and small Australian Prudential Regulation Authority (APRA) regulated funds to twice the level of a general expense.
  • exempt large APRA regulated funds from the NALI provisions for both general and specific expenses of the fund
  • exempt expenditure that occurred prior to the 2018–19 income year
  • apply from 1 July 2018.

Treasury consultations on the proposed changes occurred during:

For more information see: