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Why can't my SMSF invest in my Company?

Discussion in 'Investing Strategies' started by chelle84, 16th Feb, 2009.

  1. chelle84

    chelle84 New Member

    Joined:
    12th Feb, 2009
    Posts:
    1
    Location:
    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
  2. AsxBroker

    AsxBroker Well-Known Member

    Joined:
    8th Sep, 2007
    Posts:
    1,448
    Location:
    Sydney, NSW
    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
     
  3. Billv

    Billv Getting there

    Joined:
    15th Jul, 2007
    Posts:
    1,796
    Location:
    Sydney, NSW
    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