Education

The ATO could not be clearer: you are responsible for running the fund and for the decisions it makes, and you cannot contract out of your responsibilities ATO obligations. You can delegate tasks — the doing of the work — but not the accountability …

An SMSF is built on the principle that its members run it. Every member must be a trustee (or a director of the fund's corporate trustee), and all trustees are responsible for running the fund and making decisions in the best financial interests of …

SMSF trustees are required to value the fund's assets atMarket Valuewhen preparing the fund's financial accounts and statements each year ATO valuation guide. Market value means the amount a willing buyer and a willing seller would agree on in an arm's length transaction. This …

Superannuation law starts from a prohibition: an SMSF must not borrow money, subject to limited exceptions. The most significant is the LRBA ATO limited recourse borrowing arrangements. Under an LRBA, the fund borrows to acquire a single acquirable asset (or a collection of identicalAssetswith …

An SMSF generally cannot acquire an asset from a related party. The permitted exceptions are narrow: listed securities at market value, in-house assets kept within the 5% limit, and business real property acquired atMarket ValueATO investment restrictions. Business real property is the exception that …

An SMSF generally cannot acquireAssetsfrom a related party. Listed securities — shares, units and similar instruments quoted on an approved stock exchange — are an express exception, provided they are transferred atMarket ValueATO investment restrictions. This is why you can move your personally held …

Superannuation law is blunt here. An SMSF cannot lend money or provide direct or indirect financial assistance to a member or a member's relative ATO investment restrictions. Children are relatives. This is not a matter of degree or reasonableness: even aLoanon full commercial terms, …