Opinion

Why SMSFs can never lend money to relatives – ever

An SMSF can lend money to a person or business completely unrelated to members of the fund but all loans must be made on commercial terms.

Meg HeffronContributor

Nov 28, 2024 – 5.00am

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Much is written about SMSFs borrowing to invest using a special structure known as a limited recourse borrowing arrangement (LRBA).

But what about SMSF trustees who would like to lend money to someone else and earn interest on the investment?

Meg Heffron is managing director at SMSF specialist firm Heffron.

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