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VIDEO · 13 DECEMBER 2024

Can an SMSF buy real property from a related party?

Cooper Grace Ward
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Whether your SMSF can buy a real property from a related party.

AustraliaWealth Management
Keeghan Silcock
Keeghan Silcock
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In this edition of It depends, senior associate Keeghan Silcock discusses whether an SMSF can buy real property from a related party.

Video transcript

Hi, my name is Keeghan and welcome to another edition of It Depends.

Today I'll be talking about whether your SMSF can buy a real property from a related party.

It depends.

The first important question to ask is whether the real property constitutes business real property. This is because there is a prohibition from an SMSF purchasing assets from related parties. The one exception in this case is that if the property is business real property, then it can be acquired by the SMSF. For the property to be business real property, the land and the buildings need to be wholly and exclusively used in a business. One issue that we see some clients falling foul of is where the activities that are carried on on the land are not sufficient to amount to a business. For example, where the entity which owns the

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© Cooper Grace Ward Lawyers

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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