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Is my Self Managed Superannuation Fund (SMSF) able to sell property to a related party, i.e., myself / a trustee / member?

SMSF members and trustees are not prevented by the Tax Legislation from purchasing assets owned by their SMSF.  Conversely, only in very limited circumstances can a SMSF purchase an asset from a related party. According to the Australian Taxation Office (ATO) the trustees of a SMSF must ensure when a related party purchases an asset from their SMSF the following is adhered to:

1. Independent valuation report should be sourced prior to the transaction being conducted;

2. A written contract should be in place on commercial terms;

3. The purchase / sale price should reflect a true market value; and

4. The transaction should be conducted on an Arm's length basis. Please refer to:

Please note. Arm's length means that the price should be the same had it transaction been conduction by parties not been related.