Who is a related party of an SMSF?

For an SMSF, the term “related party” is relevant for the purposes of the prohibition on the acquisition of assets by the fund and the in-house asset investments of SMSF. A “related party” of a superannuation fund means any of the following:
  • A member of the fund or a “Part 8 associate” of a member
  • A standard employer–sponsor of the fund or a Part 8 associate of a standard employer-sponsor of the fund (SIS Act s 10(1)).
It is imperative to understand who is a related party of the fund to ensure that any transactions undertaken by the SMSF are permissible within the requirements of the legislation. The definition of Part 8 associate is convoluted and therefore I have prepared a flowchart to simplify the definition: Related-Party-SF

About the author

Naz Randeria is the Founder and Managing Director of Reliance Auditing Services. With more than 25 years’ experience in audit and accounting, Naz is an ASIC registered SMSF Auditor, SMSF Specialist Auditor, Registered Company Auditor, and Chartered Accountant.

She is actively involved in the SMSF audit sector and is passionate about sharing audit, compliance and SMSF knowledge with clients, professional colleagues and the wider public.

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DISCLAIMER: This information is an interpretation of rules, regulations and standards. It should not be considered as general or specific advice and neither purports, nor is intended to be advice on any particular matter. No responsibility can be accepted for those who act on the contents of this publication without first obtaining specific advice. Liability limited by a scheme approved under Professional Standards Legislation.