Non Arms Length Income (NALI) can be an advantage!

Facebook Twitter LinkedIn Mail Us

David Hasib’s – Wealth Planning Tip

 

An SMSF paying tax at the top marginal rate on investment income it receives is not usually ideal for clients but it can still lead to a favourable outcome.

For example, an SMSF would pay tax at the highest marginal rate on a distribution it receives from a discretionary trust, but if the client is already in this same tax bracket, they may not be disadvantaged.

The funds could now be invested in the highly concessional superannuation tax environment and there would be no contribution cap considerations as NALI is income not a contribution. As long as the NALI is reported correctly it is not a breach.

 

If you would like to know more about how we may be able to help you plan for your future, call us on 1300 99 77 34 or email your enquiry to FinancialOptions@chan-naylor.com.au for a complementary initial consultation.

 

David Hasib – Director,

Chan & Naylor Wealth Planning www.chan-naylor.com.au

 

David Hasib

General Advice Disclaimer
The advice provided on this article is general advice only. It has been prepared without taking into account your objectives, financial situation or needs. Before acting on this advice you should consider the appropriateness of the advice, having regard to your own objectives, financial situation and needs. If any products are detailed on this website, you should obtain a Product Disclosure Statement relating to the products and consider its contents before making any decisions.
Chan & Naylor Wealth Planning disclaim all and any guarantees, undertakings and warranties, expressed or implied, and shall not be liable for any loss or damage whatsoever (including human or computer error, negligent or otherwise, or incidental or consequential loss or damage) arising out of or in connection with any use or reliance on the information or advice in this article. The user must accept sole responsibility associated with the use of the material on this site, irrespective of the purpose for which such use or results are applied.

Leave a Reply

Your email address will not be published. Required fields are marked *

Join our mailing list today!

Keep up to date with our latest news & updates!

Subscribe to Newsletter (home)

Join Our Mailing List

Join thousands of property investors and business owners who subscribe to Chan & Naylor – get monthly updates including news and views from experts in property, business, wealth creation, tax accounting, finance...and more!