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.

Generally:

• 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.

Find out about:

• Related parties and relatives
• Loans and early access
• Acquiring assets from related parties
• In-house assets
• Business real property
• Collectables and personal use assets
• Borrowing