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INVESTMENT REQUIREMENTS

The main investment requirements for DIY superannuation are outlined below;

  • Investments must be in line with the fund’s investment strategy

It is a requirement that a SMSF has a written investment strategy in place. All investments must be made in accordance with this strategy. The strategy may be altered over time upon the agreement of the trusts members.

  • Investments must be at arm’s length

No party may owe or give concessions to an investment that any normal person would be entitled to. Transactions must occur at market value.

  • Cannot lend to, nor provide financial assistance to members and relatives

  • A fund cannot borrow

Funds cannot borrow except to meet short term liquidity requirements, in which case the fund can borrow up to 10% of its total assets.

  • Cannot acquire assets from a related party

There are certain situations whereby exceptions can be made to this last rule.

For more information on DIY superannuation, please click here.


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