Penalties for non-arm's length income – NALI – in superannuation need legislative change before the compliance honeymoon comes to an end next July, said the superannuation leader at CA ANZ, Tony Negline. The current law was a problem for all funds but especially SMSFs, said Mr Negline, because it disproportionally penalised innocent mistakes. Speaking on this week's Accountants Daily podcast, Mr Negline said the Coalition had left the problem in Labor's in-tray. "Hopefully the new government will make an announcement that they intend to amend the law to bring it back to a more reasonable setting," he said. "It has to be by legislation. It's the only way to solve it properly."