#9683
Awan Hammad
Participant

    Hi Martin

    Thanks.

    SMSF’s in the past were often established with a Principal Employer (or an Employer Sponsor) as part of the deed.

    A Principal Employer relates back to old legislation when an employer and the trustee of the SMSF had an agreement in relation to the making of contributions.

    A related party includes an employer sponsor and an associate of an employer sponsor. An employee would not normally be a related party of the employer sponsor if they do not majority own or control it.

    An article that covers this issue is found at:

    nautiluslaw.com.au
    Can an employee acquire a residential property as an investment in the employee’s Self Managed Superannuation Fund (SMSF), if the employer is a property developer? – Nautilus Law Group

    This question asks whether an employee (or its SMSF) is a related party of their employer for purposes of Sections 71 and 66 of the SIS Act.

    Are you able to explain your query further if the above does not assist?

    Thanks

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