Can my smsf buy shares in a private company

You have a great deal of freedom to select investments that you think will suit the needs of your fund and its members.

So, for example, any property owned by the fund cannot be used by the members or their families, even if rented out at a market rental. Trustees owe a fiduciary obligation to beneficiaries to act in their best interests and handle the trust in accordance with the trust deed.

Do you need finance for your SMSF? We know which banks will approve loans for Self Managed Super Funds, making it easy to implement your investment strategy.

Please enquire online and our specialist mortgage brokers will help you get the loan you need for your SMSF. Many people think that they can simply borrow money from their fund and pay back the money with an interest rate that is higher than the banks.

Although this may sound like a suitable arrangement, it is definitely not allowable, not to mention incredibly risky! There is actually nothing wrong with the fund lending money or making investments, as long as it is in accordance with the stated investment strategy.

However, the fund cannot invest in related parties. Under the Superannuation Industry Supervision Act A related party is widely defined to include the fund members, a standard employer-sponsor of the fund or an associate of either.

An associate can be the relative or spouse of a member and any companies or trusts that they control. For example, Tim and Judy are the trustees and members of their SMSF. There are many technical aspects to what is classified as a related party, so it is best to get specific up-to-date advice on whether your investment to that entity will be possible.

How to buy & sell shares | ASIC's MoneySmart

Many years ago these investments may have been allowed. You will also most likely be forced to sell the investment in the near future if further changes are made to the law. Do you need help with your investment strategy?

A SMSF can invest in a variety of assets including property and shares. But what about smaller personal assets like artwork, wine, war medals, collectibles and boats? Technically yes, but the rules for holding these types of assets have become so strict that acquiring these assets is recommended.

They are also a red-flag for the ATO and your fund may be audited.

Can your SMSF buy your business?

The types of assets that an SMSF can invest in are generally restricted because they do not meet the sole-purpose test. Enquire online today to get expert advice for your SMSF.

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Issues when a SMSF Invests in a Private Company - Affinity Accounting Plus

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