Your fund can't acquire an asset from a related party unless it is acquired at market value and is:
- a listed security (for example, shares, units or bonds listed on an approved stock exchange)
- business real property
- an in-house asset, provided the market value of your fund’s in-house assets does not exceed 5% of the total market value of your fund's assets
- an asset specifically excluded from being an in-house asset.
If the asset is acquired at less than market value (including any 'in specie' contribution value), the difference between the market value and the amount actually paid is not considered to be a contribution. Income generated by the asset will be non-arm's length and will be taxed at the highest marginal rate.
The Valuation guidelines for self-managed super funds will help you comply with these requirements.
For more information, see:
- Employee share scheme (ESS)
- Tax Ruling 2010/1 Opens in a new windowIncome tax: superannuation contributions
- Law Companion Ruling 2021/2Opens in a new window.