Awan Hammad

    Hi Sandeep

    The ATO released PCG 2020/5 “Applying the non-arm’s length income provisions to ‘non arm’s length expenditure’ – ATO compliance approach for complying superannuation entities”.

    Under this Guideline “The ATO will not allocate compliance resources to determine whether the NALI provisions apply to a complying superannuation fund for the 2018-19, 2019-20, 2020-21, 2021-22 and 2022-23 income years where the fund incurred non-arm’s length expenditure”.

    As a result the NALE provisions need to be considered from 1 July 2023. Arguably no accounting fee needs to be charged during the year ended 30 June 2023 however an accounting fee needs to be charged for work performed from 1 July 2023.

    The policy of not charging a fee to Partners from 1 July 2023 would only not be NALE if as per LCR 2021/2 the discount is not able to be influenced by the Partner and the discount is available to all staff.

    The Auditors Institute


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