Key rules to obey when dealing with related party-entities of your super

Before delving into SMSF rules regarding related parties, let’s address a fundamental question: who constitutes a related party in your fund?

Now let’s deal with the complicated part first. Who is a related party of your SMSF? A ‘related party’ of your fund includes:

• All members of your fund

• Associates of fund members, which include:

• the relatives of each member
• the individual business partners of each member
• any spouse or child of those business partners
• any company the member or their associates control or influence
• any trust the member or their associates control.

• Standard employer–sponsors, which are employers who contribute to your super fund for the benefit of a:

• member, under an arrangement between the employer and a trustee of your fund and associates of standard employer–sponsors
• relative of a member means any of the following:
  • parent, grandparent, brother, sister, uncle, aunt, nephew, niece, lineal descendant or adopted child of the member or their spouse. You should note cousins are not listed here.
  • spouse of any individual specified above.

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