Can I acquire assets from a related party?

In general, super funds are not allowed to acquire assets from related parties, but there are certain exceptions. For example, your SMSF could acquire the following from related parties, as long as the transaction is done at market value:

  • a security listed on an approved stock exchange
  • commercial property (although there are conditions to meet for a property to be allowable)
  • units in trusts that are considered ‘widely held’ (for example, managed funds, certain unlisted property trusts with a large number of investors)
  • in-house assets that don’t cause the fund to breach the limits on those types of assets
  • units in trusts/shares in companies that meet particular conditions.

Remember, your fund can ‘acquire’ assets in a variety of ways – it could ‘buy’ them in the traditional sense (i.e. pay money for them), but it would also acquire them if the asset was given to the fund as an in specie contribution.