Superannuation law strictly prohibits lending money from an SMSF to a member, relative, or related party. It also forbids family members or related parties from using any assets (such as property) owned by the SMSF.
Breaching these rules can result in severe consequences — including the fund being made non-complying, losing nearly half its assets in tax penalties, and the trustee being disqualified.
If you’re unsure about the rules around lending or asset use within an SMSF, contact SMSF Financial for general guidance and support.