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