Why can't my SMSF invest in my Company?

Discussion in 'Share Investing Strategies, Theories & Education' started by chelle84, 16th Feb, 2009.

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  1. chelle84

    chelle84 New Member

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    Sydney, NSW
    Why can't my SMSF invest in my Company? From what i've gathered this can't be done.

    Does anyone know a way around it? I'm looking to buy property and then shares with a margin loan but I need the help of the funds in my SMSF.

    Could my SMSF buy unlisted shares in my company?
     
    Last edited by a moderator: 16th Feb, 2009
    chelle84, 16th Feb, 2009
    #1
  2. AsxBroker

    AsxBroker Well-Known Member

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    Hi Chelle,

    You might want to take a step back and think about the bigger picture. A super fund is for your retirement savings...not for you to live off before you retire.

    A SMSF can borrow to purchase shares and property.

    For professional advice you should speak to a SMSF specialist.

    Cheers,

    Dan
     
    AsxBroker, 16th Feb, 2009
    #2
  3. BillV

    BillV Well-Known Member

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    No because it would fail the sole purpose test
    " a superannuation fund running a business as part of an investment strategy is in breach of the sole purpose test of providing retirement benefits for the members and beneficiaries of the fund"

    cheers
     
    BillV, 16th Feb, 2009
    #3