From www.smsfadviser.com: Natalia Scott, a superannuation adviser, emphasizes the importance of understanding the capacity in which work is performed when calculating non-arm’s length expenses for self-managed superannuation funds SMSFs.

Trustees cannot be paid for work done in their capacity as trustees, as this violates section 17 of the Superannuation Industry (Supervision) Act, which prohibits trustee remuneration for services.

Adhering to arm’s length rules ensures that trustees must document transactions to avoid breaching compliance laws related to related-party dealings.