Self-Managed Super Funds
Investment decisions and rules
A personal benefit cannot be provided to a member or a related party of a super fund from any of the assets held.
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Example 1 |
Although there is no rule that says an SMSF cannot run a business, the business would need to be operated for the sole purpose of providing retirement benefits for fund members. The ATO is unlikely to accept a business being set up to employ members and/or other family members under the sole purpose test. The ATO is likely to determine that the primary purpose of the SMSF is not to accumulate retirement savings but rather to run a business in order to provide a current income stream to members or related parties. |
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Example 2 |
The SMSF cannot purchase a car for the member to use. This is an asset that provides a benefit to the member and would breach the sole purpose test. A holiday house would also not generally satisfy the sole purpose test because of the personal benefits it provides to members. |
