According to the Australian Taxation Office (ATO), a related party to a self-managed super fund (SMSF) is any person or entity with a close relationship with the fund or its members. This includes:
- The members of the fund and their relatives
- The employers of the fund members, if the employer contributes to the fund
- Any entity that is controlled or influenced by the fund members or their associates, such as a company, trust, partnership or joint venture
- Any entity that has a legal or financial obligation to the fund or its members, such as a lender, guarantor or service provider
Related parties to an SMSF are subject to specific rules and restrictions under the Superannuation Industry (Supervision) Act 1993 (SISA) and the Superannuation Industry (Supervision) Regulations 1994 (SISR). These rules are designed to prevent conflicts of interest, self-dealing and tax avoidance within the SMSF sector.