How much income will be treated as NALI income and taxed at the top marginal rate?

'NALI' is a horrible acronym for 'non-arm’s length income'.  Such income is taxed at the highest marginal rate even if the superannuation fund is a complying superannuation fund.

The ATO takes the view that the entire income from the arrangement (dividends, lease payments and capital gain on disposal of the property held in the holding trust) will be subject to the top marginal tax rate.

The ATO does not consider that the measure of the excessive income is the difference between an arm’s length interest rate and the actual interest rate changed.