Can My SMSF Lend Money to My Business?

Platinumtelecom on 08/07/2018 - 09:43
Last edited 08/07/2018 - 09:50 by 1 other user

I thought I would ask on this forum before discussing with a professional advisor.

I am currently in the process of setting up my SMSF with a company trustee. I am the sole director of the company.

Still have a lot to learn about SMSF. I understand it is possible to invest in commercial property for my own business and pay a lease back to the SMSF at market rate.

Would it also be possible for a SMSF to lend money to the business with a loan agreement at market interest rate?

• 

  Baysew on 08/07/2018 - 09:49

  +2

  No to lending money to -

  any company the member or their associates control or influence

  Related parties and relatives

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  Platinumtelecom on 08/07/2018 - 09:59

  +1

  Thank you! I was looking for an answer on the ATO website and somehow didn't see that. I thought it might have been the case….

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  ectogammat on 08/07/2018 - 11:31

  +2

  https://www.ato.gov.au/Super/Self-managed-super-funds/Invest…

  An in-house asset is any of the following:

  a loan to, or an investment in, a related party of your fund
  an investment in a related trust of your fund
  an asset of your fund that is leased to a related party.

  There are some exceptions, including:

  business real property that is leased between your fund and a related party of your fund
  some investments in related non-geared trusts or companies
  most investments and loans entered into before 11 August 1999.

  In-house assets can't be more than 5% of your fund’s total assets.