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ARTICLE · 18 JANUARY 2024

It Depends – Can my SMSF make loans?

Cooper Grace Ward
Cooper Grace Ward
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Cooper Grace Ward

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This edition discusses whether your self-managed super fund can lend money.

AustraliaFinance and Banking
Keeghan Silcock
Keeghan Silcock
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In this edition of 'It depends', senior associate Keeghan Silcock talks about whether your self-managed super fund can lend money.

Video transcript

Hi, my name's Keeghan. Welcome to another edition of It depends. Today, I'll be talking about whether your self-managed super fund can lend money.

Can my SMSF lend money?

It depends. There are restrictions on an SMSF lending money. The first is that an SMSF cannot lend money to a member or a relative of a member. So, a spouse, children, parents, etc. There is a blanket prohibition against that, that you cannot do it in any circumstance because it would amount to a breach of the prohibition against financially assisting a member or their relatives under Section 65 of the SIS Act. However, it may be possible for the self-managed super fund to lend money to a related entity. The issue I guess with this that you'd have to consider is that the loan from the SMSF to a related entity would be an in-house asset. And so, it would be

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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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