Hi Team,

I am am engaged to audit SMSF where trustee is one of the senior partner of the accounting firm. During FY 2023 accounting fee was not charged to partner's SMSF and the accountant replied that it is the policy of the firm to not charge any accounting fee to partners/senior partners. My question is " Will the policy of not charging accounting fee to senior partners by accounting will be covered under the example 58 of the LCR 2021/2 or will the provision of non-arm’s length expenditure apply?

"Example 8 – third party providing services – discounts

58. Sasha is the trustee of her SMSF of which she is the sole member. She is also an employee of Eren & Co Accountants.

59. Sasha engages Eren & Co Accountants to provide accounting services to her SMSF. Sasha is entitled to a staff discount rate that is available to all staff of Eren & Co Accountants. Sasha is charged the discounted rate for these services.

60. As the discount is available to all staff of Eren & Co Accountants and is not able to be influenced by Sasha, the discounted rate has been provided on an arm’s length basis. Accordingly, the non-arm’s length expenditure provisions will not apply."

Thanks