Superannuation contributions – proposed changes to TR 2010/1

Following the release of LCR 2021/2 on the non-arm’s length income (NALI) rules, the ATO has issued proposed changes to Taxation Ruling TR 2010/1, its ruling on superannuation contributions. The key changes address the application of the NALI rules where:

• A super provider incurs non-arm’s length expenditure (eg where an asset is purchased under a contract at less than market value).
• A person does something that increases the value of a fund asset and the parties are not acting on an arm’s length basis.

A proposed compliance approach is included at Draft Appendix 2. The ATO intends not to allocate compliance resources (from 2018-19) to determine whether a contribution has been made in circumstances where: a person performs one or more actions that shift value to a fund asset; the super provider does not recognise the value shift as a contribution to be allocated to a member; and income derived by the superannuation provider with respect to the asset is NALI.