Loans issued by an SMSF
Loans Issued by a Self-Managed Super Fund (SMSF)
If you manage a Self-Managed Super Fund (SMSF), understanding the rules around issuing loans is essential for maintaining compliance. At SMSF Depot, we provide expert guidance on ensuring your fund operates within Australian regulations.
What the ATO Says About SMSF Loans
The Australian Taxation Office (ATO) strictly regulates loans issued by an SMSF. In general, SMSF are not allowed to lend money to members or their relatives. Doing so can result in severe penalties and your fund becoming non-compliant.
However, an SMSF may issue loans to unrelated parties, provided that:
The loan is made on an arm’s length basis
The interest rate is commercially reasonable
The loan agreement is documented properly
The transaction is in line with the fund’s investment strategy
Why Compliance Matters
Issuing a loan that breaches SMSF rules can trigger penalties or cause your fund to be deemed non-complying, leading to tax issues. That’s why SMSF Depot supports trustees with end-to-end SMSF compliance services, including:
Investment strategy documentation
Independent SMSF audit services
Advice on permitted transactions
Annual SMSF tax return preparation
We ensure your fund stays compliant with ATO expectations every step of the way.
SMSF Depot: Your SMSF Compliance Partner
With years of experience helping Australians manage their super, SMSF Depot is a trusted name in:
SMSF Accounting
Online SMSF administration
Structuring your fund in line with superannuation provider regulations
Explore how our SMSF solutions support long-term retirement goals with professional oversight and ongoing compliance.
Need help with your SMSF’s investment or lending decisions?
Contact SMSF Depot for tailored support from our team of SMSF specialists.