ATO - UPDATE TO PCG 2020/5 NON_ARM'S LENGTH EXPENDITURE

The ATO has updated Practical Compliance Guideline (PCG) 2020/5 Applying the non-arm's length income (NALI) provisions to 'non arm's length expenditure' – ATO compliance approach for complying superannuation entities. The update extends the ATO's compliance approach by another 12 months to 30 June 2023. This means the ATO won’t allocate compliance resources in the 2022–23 financial year to determine whether the non-arm’s length income provisions apply to all general income of the fund, where it incurs non-arm’s length expenditure of a general nature on or before June 30,2023