For the SMSF Trustee, there are certain rules that must be followed to ensure the SMSF super fund stays compliant regarding what you can invest in.
Key Investment Rules
- Ensure Fund-Ownership of assets is secure (preference in trustee name (individual(s) or corporate name) – S52(2)(d)
- Invest following the written Investment Strategy – Reg 4.09
- Cannot lend money or financially help others or members – S65
- Cannot buy assets from members or related members or entities (except shares and securities at market value, business real property) – S66 & S69-71E
- Must be no charge over any assets in the fund (recourse) S67A-67B & Reg 13.12–13.13
- Meet Sole Purpose Test – Decisions that will provide for retirement – S62.
SFs can invest in various asset classes including:
- Shares, Options, CFD’s ,Covered Call Options
- Property – Residential and Commercial
- Managed Funds
- Term Deposits and Cash
- Government Bonds
- Exotic Assets (with a proviso***) such as:
- Art and Collectables
- Cars, Wine
- Antiques, Jewellery
***The Main Issue is you cannot USE/Enjoy them YET – This would break the Sole Purpose Test and is a breach of the SIS Act – S62 & Reg 13.14.
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