• Related parties and relatives

    Several investment restrictions apply to transactions involving 'related parties' of your fund and 'relatives of members'. No one associated with your fund should get a present-day benefit from its investments.

    Your fund needs to be maintained for the sole purpose of providing death or retirement benefits to your members or their dependants.

     

    Duration 03:01. A transcript of SMSF – related party transactions is also available.

    A 'related party' of your fund includes:

    • all members of your fund
    • associates of fund members, which include
      • the relatives of each member
      • the business partners of each member
      • any spouse or child of those business partners
      • any company the member or their associates control or influence
      • any trust the member or their associates control.
       
    • standard employer–sponsors, which are employers who contribute to your super fund for the benefit of a member, under an arrangement between the employer and a trustee of your fund
    • associates of standard employer–sponsors, which include
      • business partners and companies or trusts the employer controls (either alone or with their other associates)
      • companies and trusts that control the employer.
       

    A relative of a member means any of the following:

    • a parent, grandparent, brother, sister, uncle, aunt, nephew, niece, lineal descendant or adopted child of the member or their spouse
    • a spouse of any individual specified above.
    Last modified: 14 Oct 2016QC 42467