SMSFs offer significant flexibility and control of investment decisions. However, there are a number of rules that trustees must abide by in making these decisions, to ensure the funds are invested in order to provide benefits upon your retirement. Breaching these rules may result in the SMSF incurring extra tax.

Learn about the rules relating to SMSF lending and borrowing money, purchasing assets from members and ensuring all transactions are conducted at arm’s length.

Before you begin...

Time to complete

1.5 hours

Assessment type

Five multiple choice questions

When you finish

2.25 AFA CPD Points

What you'll learn...

  • Explain the sole purpose test
  • Specify the rules applying to collectables and personal use assets
  • Identify who is a related party of a self-managed super fund
  • State the prohibition of providing financial assistance and loans to members
  • Outline the rules regarding acquiring assets from related parties
  • State the requirement to invest on an arm’s length basis
  • Define an in- house asset of a self-managed super fund
  • Explain the borrowing restrictions and exceptions for SMSFs