#9716
Awan Hammad
Participant

    Hi Lacey

    Yes based on what you have advised the Unit Trust would comply with the SIS reg. 13.22C requirements.

    In relation to the property being rented to a related party SIS reg. 13.22C(d) states:

    “(d) the company, or a trustee of the unit trust, is not a party to a lease, or lease arrangement, with another party in relation to an asset that is the subject of another lease or lease arrangement between any party and a related party of the superannuation fund (unless the asset is business real property)”.

    That is the property to be rented to a related party does not have to be a primary production property it just has to meet the definition of business real property that is property used wholly and exclusively in the running of a business. As the residential property is rented to an unrelated party this is not an issue.

    Thanks

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