Eligible SMSF Investments

"There is a wide range of eligible investments that a smsf has the ability to invest in."

The information listed below is a summary and is intended to be of a general nature only. It does not take into account your individual circumstances or the specifics of your existing superannuation fund.

The below information is not intended to be comprehensive and we recommend that you seek professional advice that will take into account and address your personal circumstances.

The trustees of a SMSF have the discretion to decide what the fund invests. The trustees will need to ensure that all investments are consistent with the fund’s investment strategy and do not breach the SIS Act or other relevant / applicable laws.

The following investments will generally be acceptable within a SMSF:

  • Australian equities
  • Direct property
  • Other listed securities (eg. Listed hybrids, listed property trusts and  listed ETF’s)
  • Bank related deposits
  • Managed investment funds

It is recommended that trustees seek professional investment advice and consider the potential growth and income characteristics of the asset, as well as the associated risks, liquidity and the diversification of the overall portfolio before making any investment decisions.

Close attention needs to be undertaken when considering the following:

  • Collectables such as coins and art work
  • Derivatives, warrants and other structured products
  • Non-traditional investments

Assets that are generally not permitted within SMSF’s:

The superannuation laws do not prescribe what the fund can invest in. Trustees must ensure that all investments are made with the fundamental purpose of providing for the retirement of members, this is known as the ‘sole purpose test’.

There are investments that would generally not be acceptable within a SMSF, some of these would include:

  • Investments that deliver benefits to a person today rather than in retire
  • Loans to fund members or their relatives
  • Assets acquired from the underlying members relative or the members of the SMS
  • Assets that have a charge or mortgage over them
  • A business that is operated by the fund or its members
  • Transactions that are executed on a non-arms length basis