Treasury Laws Amendment (Support for Small Business and Charities and Other Measures) Act 2024 (52 of 2024)

Schedule 7   Non-arm's length expenses of superannuation funds

Income Tax Assessment Act 1997

4   At the end of section 295-550

Add:

Certain small entities - general expenses

(8) If:

(a) a *complying superannuation entity is:

(i) a *regulated superannuation fund with no more than 6 members; or

(ii) a *self managed superannuation fund; and

(b) as a result of a *scheme the parties to which were not dealing with each other at *arm's length in relation to the scheme:

(i) in gaining or producing the *ordinary income and *statutory income of the entity (but not in gaining or producing income in relation to any particular asset or assets of the entity), the entity incurs a loss, outgoing or expenditure of an amount; and

(ii) the amount is less than the amount of a loss, outgoing or expenditure that the entity might have been expected to incur if those parties had been dealing with each other at arm's length in relation to the scheme;

an amount of the entity's ordinary income and statutory income equal to twice the difference between the amount that the entity did incur and the amount that the entity might have been expected to incur is non-arm's length income of the entity.

(9) If:

(a) a *complying superannuation entity is of a kind referred to in paragraph (8)(a) (about certain small entities); and

(b) as a result of a *scheme the parties to which were not dealing with each other at *arm's length in relation to the scheme, in gaining or producing the *ordinary income and *statutory income of the entity (but not in gaining or producing income in relation to any particular asset or assets of the entity), the entity does not incur a loss, outgoing or expenditure that the entity might have been expected to incur if those parties had been dealing with each other at arm's length in relation to the scheme;

an amount of the entity's ordinary income and statutory income equal to twice the amount that the entity might have been expected to incur is non-arm's length income of the entity.