SMSF professionals should pay attention to the changes introduced in Law Companion Ruling 2021/2DC, which clarify the distinctions between specific and general non-arm’s length expenditure (NALE), reports www.smsfadviser.com.

The updated guidelines highlight the criteria for determining lower expenses related specifically to particular assets versus general expenses that are not tied to any specific asset.

The finalised ruling will be binding on the ATO once implemented, maintaining the effective date from July 1, 2018.