Superannuation Taxation Integrity Measures

This consultation paper covers two superannuation taxation measures designed to support the integrity of the Government’s comprehensive suite of superannuation taxation reforms.

• The first measure includes a member’s share of the outstanding balance of a Limited Recourse Borrowing Arrangement (LRBA) in their total superannuation balance (TSB).
• The second measure ensures that non-arm’s length expenditure is taken into account when determining whether the non-arm’s length income (NALI) taxation rules apply to a transaction.

The consultation paper explains how the measures are intended to operate and seeks feedback on whether they meet their policy objectives; whether their objectives could be achieved in some other way; and what may be the unintended consequences of the measures.

The consultation paper is intended to be read in conjunction with the exposure draft legislation and draft explanatory memoranda for those two measures, being items 4-7 of the Treasury Laws Amendment (2017 Measures No. 2) Bill 2017: limited recourse borrowing arrangements (first released for public consultation on 27 April 2017) and the Treasury Laws Amendment (2017 Measures No. 12) Bill 2018: Non arm’s length income (attached).