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ARTICLE · 10 APRIL 2024

It Depends – Can my SMSF make loans?

Cooper Grace Ward
Cooper Grace Ward
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Transcript and link to video discussing whether SMSFs can make loans.

AustraliaEmployment and HR
Scott Hay-Bartlem
Scott Hay-Bartlem
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n this edition of 'It depends', partner Scott Hay-Bartlem talks about whether your SMSF can make loans and how the answer differs depending on whether the borrower is related or unrelated.

Video transcript

Hello and welcome to this edition of It Depends. I'm talking about whether my SMSF can make loans.

Can my SMSF make loans?

So, this is our first 'It depends'. Now, part of the question is going to be around is the borrower related or unrelated?

What if the borrower is unrelated?

Where the SMSF is making a loan to someone who is not technically a related party, the rules are somewhat simpler because a lot of the restrictions don't apply. However, in every case with every investment, the trustee of the SMSF must be satisfied it's a proper investment for the SMSF, that's the prudent person test. We have to make sure it complies with the investment strategy. It's got to be on, you know, normal commercial arm's length terms as to repayments and

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Cooper Grace Ward is a leading Australian law firm based in Brisbane.

This publication is for information only and is not legal advice. You should obtain advice that is specific to your circumstances and not rely on this publication as legal advice. If there are any issues you would like us to advise you on arising from this publication, please contact Cooper Grace Ward Lawyers.

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