What is a Part 8 associate?

If the standard employer sponsor is a COMPANY, then a Part 8 associate is: A partner of the company or a partnership in which the company is a partner. A trustee of a trust (in their capacity as trustee of that trust) where the trust is controlled by the company.

What is a related party ATO?

all members of your fund. associates of fund members, which include. the relatives of each member. the business partners of each member. any spouse or child of those business partners.

Do SMSF members need to be related?

A member cannot be an employee of another member unless they are related. An SMSF is in essence just a trust and like any trust is run by the trustees.

Can Smsf lend money to related party?

No. Your SMSF cannot lend you or any of your relatives money. Making this type of loan must be avoided: it’s not a way of legally accessing super early via an SMSF. Section 65 of the SIS Act prohibits superannuation funds, including SMSFs, from providing financial assistance to members or their relatives.

What is a related party employer?

A “related party” of an SMSF means any of the following: a member of the fund or a “Part 8 associate” of a member. a standard employer–sponsor of the fund or a Part 8 associate of a standard employer-sponsor of the fund (SIS Act s 10(1)).

Is an ex spouse a related party SMSF?

SIS Act adopts a broad definition of related party and can quite easily capture a member’s ex-spouse as a related party. An example is where the member’s superannuation interest is subject to a payment split in favour of their former spouse pursuant to a Family Law consent order.

What is considered a related party?

The term related-party transaction refers to a deal or arrangement made between two parties who are joined by a preexisting business relationship or common interest. Companies often seek business deals with parties with whom they are familiar or have a common interest.

Who is a related party of an SMSF?

Can you be a trustee of a super fund and not a member?

Two to six members. Each member of the fund must be a trustee, and each trustee must be a member of the fund. A member cannot be an employee of another member – unless they are relatives. Some State and Territory laws restrict the number of trustees a trust can have to less than six.

Is a cousin a related party SMSF?

Here, the definition of a ‘relative’ of an SMSF member is a parent, child, grandparent, grandchild, sibling, aunt, uncle, great-aunt, great-uncle, niece, nephew, first cousin or second cousin of the individual or of his or her spouse or former spouse; or, a spouse or former spouse of the individual, or of an individual …

Who is a related party of a SMSF?

Is an ex wife considered a related party?

A related party is any person or entity bearing a relationship to the taxpayer. Although not an exhaustive definition, this includes: Family members, such as brothers, sisters, spouses, ancestors, and lineal descendants. (Stepparents, uncles, in-laws, cousins, nephews, and ex-spouses are not considered related.)

Is an ex wife a related party?

Can a trustee be a beneficiary?

Both the settlor and/or beneficiary can be a trustee, however if a beneficiary is a trustee it could lead to a conflict of interest – especially when trustees have the power to decide by how much each beneficiary can benefit.

Who can be a trustee of a superannuation fund?

All members of a self-managed super fund (SMSF) must be individual trustees or directors of the fund’s corporate trustee. Anyone 18 years old or over can be a trustee or director of a super fund as long as they’re not under a legal disability (such as mental incapacity) or a disqualified person.