It is important to understand who is an individual’s relative for superannuation law purposes as the Superannuation Industry (Supervision) Act 1993 (Cth) (‘SISA’) imposes certain boundaries on an SMSF’s activities in relation to an individual’s relative or related party.  There are two definitions of the term relative in the SISA. Oddly, in some circumstances, an individual’s relative may not be their relative under the SISA! This article considers the two definitions of relative in the SISA and the main circumstances where these definitions are relevant. Definition under s 10 of the SISA  Broadly, s 10(1) of the SISA states that the term relative of an individual means: a parent, grandparent, brother, sister, uncle, aunt, nephew, niece, lineal descendant or adopted child of the individual or of his or her spouse; a spouse of the individual or of any other individual referred to above.   Main circumstances where the definition in s 10 of the SISA is relevant   We consider three main circumstances where the definition under s 10 of the SISA is relevant. These are: Section 65(1) of the SISA contains a general prohibition on the trustee of an SMSF lending money of the SMSF or giving any other financial assistance using the resources of … Continue reading Who is your relative for SMSF purposes and why is this relevant?