ATO Interpretative Decision

ATO ID 2003/138 (Withdrawn)


Retirement income entities - Contribution of Trade Dollars (Barter Credits)
FOI status: may be released
  • This ATO ID is withdrawn as it is superseded by paragraphs 55 to 56 and 132 to 133 of SMSFR 2010/1.
    This document has changed over time. View its history.

Status of this decision: Decision Withdrawn 30 April 2010
CAUTION: This is an edited and summarised record of a Tax Office decision. This record is not published as a form of advice. It is being made available for your inspection to meet FOI requirements, because it may be used by an officer in making another decision.

This ATOID provides you with the following level of protection:

If you reasonably apply this decision in good faith to your own circumstances (which are not materially different from those described in the decision), and the decision is later found to be incorrect you will not be liable to pay any penalty or interest. However, you will be required to pay any underpaid tax (or repay any over-claimed credit, grant or benefit), provided the time limits under the law allow it. If you do intend to apply this decision to your own circumstances, you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed. You may wish to obtain further advice from the Tax Office or from a professional adviser.


Whether the contribution of Trade Dollars to a self managed superannuation fund (SMSF) by a related party is in contravention of section 66 of the Superannuation Industry (Supervision) Act 1993 (SISA)?


Yes. The contribution of Trade Dollars into a SMSF by a related party is a contravention of section 66 of SISA.


The term 'Trade Dollars' refers to any form of credit unit used in an exchange of goods and/or services between businesses, whether or not an intermediary is involved.

A member of a SMSF wishes to contribute Trade Dollars into their SMSF.

Reasons for Decision

Section 66 of the SISA prohibits the acquisition of certain assets from related parties of regulated superannuation funds. There are some exceptions to this prohibition. The exceptions include:

listed securities transferred at market value, and
business real property of the related party transferred at market value, providing the superannuation fund has fewer than five members.

Apart from the listed exceptions, a complying superannuation fund cannot acquire assets from a related party of the fund. Subsection 10(1) of SISA defines a related party of a superannuation fund to include a member of the fund.

Section 66 of the SISA is contravened when Trade Dollars are contributed to a superannuation fund by a member as this contribution would be an acquisition of an asset from a related party not exempted under subsection 66(2) of SISA.

Date of decision:  3 February 2003

Legislative References:
Superannuation Industry (Supervision) Act 1993
   Section 10
   Section 66

Related ATO Interpretative Decisions
ATO ID 2003/137

Self managed superannuation funds
In-specie contributions
SMSF acquisition of assets
SMSF related parties

Business Line:  Superannuation

Date of publication:  15 March 2003

ISSN: 1445-2782

  Date: Version:
  3 February 2003 Original statement
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