Awan Hammad

    Hi Martin


    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:

    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?




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