This is a question we are asked often from clients with a Self Managed Super Fund (SMSF) – “what restrictions on investments do I have?”
As per the ATO website “all investments by your SMSF must be made on a commercial ‘arm’s length’ basis. The purchase and sale price of fund assets should always reflect true market value, and the income from fund assets should always reflect a true market rate of return.”
If you don’t comply with investment restrictions, the ATO can impose penalties, including disqualifying you as a trustee or even prosecution. To ensure your investments comply with the law, make sure you come and have a chat with the team at Greenhalgh Pickard. We can provide accurate advice and guidance on our individual circumstances.