To maintain the regulated status of your fund (and its attendant concessional taxation rates), the Trustee must not allow any of the following to occur:
- No more than 5% of the market value of total assets of the fund may be invested in in-house assets.
- The fund is generally prohibited from borrowing funds, although some short-term exemptions apply in relation to special circumstances and, through the creation of a bare trust which satisfies the requirements of Section 67(4A) of the SIS Act, a borrowing may be undertaken for the benefit of the Fund.
- The fund is prohibited from lending funds to members or their associates.
- The fund can only purchase from members or their associates interest-bearing deposits (such as funds on deposit with cash management trusts, etc) or securities listed on an approved Stock Exchange. Some other assets may be purchased but special rules apply and advice should be sought.
The laws governing the operation and structure of self-managed superannuation funds change frequently. Please ensure you keep abreast of these changes.
Advice should be sought from your financial advisor before committing the fund to any transaction which may result in the loss of your fund’s regulated status.