How NALI can affect your SMSF – An Overview

Non-arm’s length income (NALI) has received a lot of attention lately, particularly in regards to Limited Recourse Borrowing Arrangements (LRBA). NALI has never really received great attention, so much so that many public practitioners may not have even come across a SMSF that receives such income. However, the issue of increased interest in related party lending for LRBAs have recently grabbed much attention.