Interest on early payments
No requirement to complete Section D – label H1.
Label H1 Credit for interest on early payments – amount of interest is removed from the Fund income tax return from the 2022–23 financial year onwards.
Interest on early payments (IEP) has now been automated for eligible early payments made from 1 July 2021. As a result, there is no longer a requirement to complete the label H1 to claim a refund of IEP.
Closure of eligible rollover funds
Eligible rollover funds (ERFs) no longer exist from 31 January 2022. All ERFs should have closed by 31 January 2022 and ERFs were required to transfer remaining accounts to the ATO. This was introduced in Treasury Laws Amendment (Reuniting More Superannuation) Act 2021, No. 24, 2021.
Non-arm's length changes (NALE)
The Treasury Laws Amendment (Support for Small Business and Charities and Other Measures) Act 2024External Link amends the rules for NALE for superannuation entities.
Under the amendments, from 1 July 2018:
- For APRA regulated funds with no more than 6 members (small APRA funds), the amount of non-arm's length income (NALI) arising from a NALE that is a general expense (also referred to as 'non-arm's length general expense') will be twice the difference between the expense that the entity did incur (including nil expenditure) and the amount that might have been expected to be incurred. This is the 'Twice the difference approach'.
- For APRA regulated funds with more than 6 members (large APRA fund), exempt public sector superannuation funds, pooled superannuation trusts (PSTs) and approved deposit funds (ADFs), will be exempt from the NALI rules arising from NALE for both non-arm's length general and specific expenses. However, they will still be subject to the remaining non-arm's length income rules for income derived on a non-arm's length basis.
- For all superannuation entities, the NALE rules don't apply to expenditure incurred or expected to have been incurred before 1 July 2018.
Continue to: Completing the fund income tax return.