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

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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.