Restrictions on investments

All investments by your SMSF must be made on a commercial ‘arm’s length’ basis. The purchase and sale price of fund assets should always reflect true market value, and the income from fund assets should always reflect a true market rate of return.



  • you can't buy assets from, or lend money to, fund members or other related parties (there are some exceptions to this rule)
  • your fund can't borrow money.

If you don't comply with the investment restrictions we may impose significant penalties, including disqualifying you as a trustee and even prosecution. It's a good idea to speak to an SMSF professional to make sure your investments comply with the law.

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Last modified: 30 Sep 2016QC 23321