Residential investment properties and commercial real estate (single title/acquirable asset).

SMSF investment restrictions are rules that trustees must follow so that the fund’s investments comply with superannuation law and are made for the sole purpose of providing retirement benefits. These rules help ensure no one connected with the fund receives a present-day personal benefit from its assets.

A related party generally includes SMSF members, their relatives, and any entities they control (such as family trusts or companies). SMSF rules place strict limits on dealings with related parties to ensure investments are made at arm’s length and solely for retirement purposes. Transactions with related parties are closely monitored and must meet specific legal exceptions to remain compliant.

Business real property generally means land and buildings used wholly and exclusively in a business. It's an exception to the in-house asset and related party acquisition rules. Read further details here: Business real property

No. An SMSF generally cannot lend money or provide financial assistance (directly or indirectly) to a member or a member’s relative. This includes acting as a guarantor or giving preferential loan terms. Any loan must be arm’s length, in the best interests of the fund, and align with its investment strategy, but in practice, these loans are prohibited except in very limited circumstances.

As a general rule, no. An SMSF is not allowed to acquire assets from members or related parties unless certain strict conditions are met, such as purchasing listed securities or business real property at market value. Assets like crypto or private company shares are not considered listed securities and cannot be acquired from related parties.

Yes, but only in limited and tightly controlled situations. Examples of permitted transactions (when strict conditions are met) include: Purchasing business real property from a related party at market value Leasing business real property to a related party under commercial terms Holding certain listed securities acquired at market value All transactions must be properly documented, commercially priced, and align with the SMSF’s investment strategy.

An in-house asset is an investment between your SMSF and a related party. This includes: Loans to related parties Investments in related parties SMSF assets leased to related parties In-house assets must not exceed 5% of your SMSF’s total market value. If this limit is breached, trustees must prepare and implement a plan to bring it back within limits. Read further details here: In-house assets

Yes. Certain exceptions include business real property leased between the SMSF and a related party and some holdings in related non-geared trusts or companies, but strict conditions apply.

SMSFs are generally prohibited from borrowing, except in limited situations, such as using a Limited Recourse Borrowing Arrangement (LRBA) to acquire a single asset or identical assets with the same market value. Short-term borrowing may also be permitted to meet member benefit payments or certain liabilities. Read further details here: SMSF borrowing restrictions