Smsf
What is a SMSF
Defined as having the following characteristics: * They have less than 5 members * Each member of the fund is a trustee * No member of the fund is an employee of another member, unless those members are related * All trustees are members of the fund * No trustee receives remuneration for his or her services as a trustee
WHAT IS A RELATED PARTY
A ‘related party of the fund’ includes the SMSF members, relatives of the SMSF members, and any partnerships, partners of partnerships (if a member is in partnership with them), and trusts and companies that SMSF members control. A relative of a SMSF member covers the following: * a parent, grandparent, brother, sister, uncle, aunt, nephew, niece, lineal descendant or adopted child of the member or of the member’s spouse * the spouse of the member or the spouse of any individual listed above.
Acquisition of assets
The trustees of a SMSF must not intentionally acquire assets from a ‘related party’ of the fund. Except for the following: * Business real property (ie freehold or leasehold interests in real property used exclusively in one or more businesses) acquired at market value. * An in-house asset where the acquisition would not result in the level of the fund’s in-house assets exceeding 5% (see below). * Units in a widely held
So for Westin SMSF:
Listed securities (ie shares, units or bonds listed on an approved stock exchange, such as the ASX). Is before parliament and may be legislated as a breach of SMSF regulations (part of the Stronger Super suite of measures). It is currently an allowable acquisition.
The painting purchases do not comply with the above rules
Loans to members and relatives
The trustees of a SMSF are strictly prohibited from lending any money (or providing any form of financial assistance) to a member of the fund or their relatives.
For Westin SMSF:
The loan to Westin Landscape is a breach
The
Defined as having the following characteristics: * They have less than 5 members * Each member of the fund is a trustee * No member of the fund is an employee of another member, unless those members are related * All trustees are members of the fund * No trustee receives remuneration for his or her services as a trustee
WHAT IS A RELATED PARTY
A ‘related party of the fund’ includes the SMSF members, relatives of the SMSF members, and any partnerships, partners of partnerships (if a member is in partnership with them), and trusts and companies that SMSF members control. A relative of a SMSF member covers the following: * a parent, grandparent, brother, sister, uncle, aunt, nephew, niece, lineal descendant or adopted child of the member or of the member’s spouse * the spouse of the member or the spouse of any individual listed above.
Acquisition of assets
The trustees of a SMSF must not intentionally acquire assets from a ‘related party’ of the fund. Except for the following: * Business real property (ie freehold or leasehold interests in real property used exclusively in one or more businesses) acquired at market value. * An in-house asset where the acquisition would not result in the level of the fund’s in-house assets exceeding 5% (see below). * Units in a widely held
So for Westin SMSF:
Listed securities (ie shares, units or bonds listed on an approved stock exchange, such as the ASX). Is before parliament and may be legislated as a breach of SMSF regulations (part of the Stronger Super suite of measures). It is currently an allowable acquisition.
The painting purchases do not comply with the above rules
Loans to members and relatives
The trustees of a SMSF are strictly prohibited from lending any money (or providing any form of financial assistance) to a member of the fund or their relatives.
For Westin SMSF:
The loan to Westin Landscape is a breach
The