The ATO has released Law Companion Ruling (LCR) 2021/2 Non-arm's length income - expenditure incurred under a non-arm's length arrangement.

This Ruling clarifies how the amendments to section 295-550 [meaning of non-arm's length income] of the Income Tax Assessment Act 1997 (ITAA 1997) operate in a scheme where the parties do not deal with each other at arm’s length and the trustee of a complying superannuation entity incurs non-arm’s length expenditure (or where expenditure is not incurred) in gaining or producing ordinary or statutory income. The amendments apply in relation to income derived in the 2018–19 income year and later income years, regardless of whether the scheme was entered into before 1 July 2018.


Further information

Australian Taxation Office  LCR 2021/2 Non-arm's length income - expenditure incurred under a non-arm's length arrangement, 28 July 2021

Additional information

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