Personal details
 
 
 
First name*
 
 
 
Last name*
 
 
 
Member number (if known)
 
 
 
Email*
 
 
 
 
 
Question 1
 
1. Which of the following assets would an SMSF trustee always be permitted to acquire from a related party?*
 
A) Real property
B) Money
C) Shares in a private company
D) Cryptocurrency
 
 
 
 
 
 
Question 2
 
2. Which of the following would not be considered a “related party” of a superannuation fund under Section 10 of the SIS Act?*
 
A) A private unlisted company, where a fund member’s brother owns 60% of the shares
B) A member of the fund
C) A unit trust where a fund member’s cousin has a fixed entitlement to 60% of the capital
D) A private unlisted company, where a fund member’s aunt owns 55% of the shares
 
 
 
 
 
 
Question 3
 
3. Which of the following would not be a permitted exception to the prohibition on acquiring assets from a related party?*
 
A) Listed securities acquired at market value
B) Business real property acquired at market value
C) Residential property leased to a related party, i.e. an in-house asset, acquired at market value
D) Units in a pre-1999 unit trust which has outstanding borrowings and the market value of the units exceeds 5% of the fund’s market value
 
 
 
 
 
 
Question 4
 
4. Philip’s SMSF has total assets of around $1,000,0000. His fund recently acquired shares in Crystal Stones Pty Ltd from Patricia (Philip’s spouse) valued at $80,000. Which of the following statements is correct?*
 
A) The acquisition is prohibited, as Patricia is a Part 8 Associate of Philip
B) If the company is a related party, and the shares are acquired at market value, the acquisition will be permitted
C) If the company is not a related party, and the shares are acquired at market value, the acquisition will be permitted
D) If the company is listed on an approved stock exchange, and the shares are acquired at market value, the acquisition will be permitted
 
 
 
 
 
 
Question 5
 
5. Warren owns a residential property that he would like to transfer into his SMSF?*
 
A) As the property is not zoned commercial it cannot be business real property
B) If the property is leased to the business of a related party and is used wholly and exclusively in that business it will be business real property
C) It can only be business real property if Warren is using it in a business that he personally operates
D) As Warren is a member of the fund, a transfer of any form of property would result in a breach of Section 66
 
 
 
 
 
 
Question 6
 
6. Which of the following is true regarding the acquisition of listed securities from a related party?*
 
A) Securities listed on any approved stock exchange may be acquired at market value
B) Only securities listed on the ASX are permitted to be acquired from a related party
C) Listed securities do not have to be acquired at market value
D) Listed securities can be acquired from a related party but not from a fund member
 
 
 
 
 
 
Question 7
 
7. Which of the following assets would least likely be a permitted acquisition from a fund member?*
 
A) A residential property which is used as a doctor’s surgery
B) A property used as a retail barber shop
C) An off-the-plan residential property, which will be used solely for residential purposes, where the property is held within a property development business
D) A property with a commercial space downstairs and a residential space upstairs on a single title
 
 
 
 
 
 
Question 8
 
8. Tony holds units in the ‘Strike it Rich’ unit trust. Tony’s SMSF also owns units in this unit trust. Between his existing personal and SMSF holdings, Tony effectively has control over the trust.

Tony would like to transfer some of his personally held units into his SMSF.*
 
A) As the unit trust is a related trust, the acquisition would be prohibited
B) The transfer would only be permitted if the trust only holds business real property and cash
C) The transfer would only be permitted if the trust has no borrowings
D) If the trust meets the requirements of Regulation 13.22C the fund could acquire 100% of the units in the unit trust
 
 
 
 
 
 
Question 9
 
9. Colin would like to transfer his residential property into his SMSF but he is aware of the prohibition against acquiring assets from a related party. He decides to sell the property to his friend Kevin – who is not a related party or Part 8 Associate.

Shortly thereafter, Kevin agrees to sell the property to Colin’s SMSF at market value.

Which of the following statements is true?*
 
A) As the sale to Colin’s SMSF was conducted at market value it will be permitted
B) As Kevin is not a related party of Colin’s SMSF, there is no breach of Section 66 which only applies to acquisitions from a related party
C) The transaction may be a scheme or an arrangement to circumvent the prohibition against acquiring assets from a related party
D) There would only be a breach of Section 66 if Colin’s original sale to Kevin was not conducted at market value
 
 
 
 
 
 
Question 10
 
10. When considering the prohibition against acquiring assets from a related party, which of the following statements is true?*
 
A) Shares issued under an Employee Share Scheme will not breach Section 66
B) A breach of Section 66 will occur even if the fund trustees were unaware that the party was a related party
C) An in-specie contribution will not be considered an ‘acquisition’ of an asset from a member as there was no consideration provided
D) Where a fund member owns less than 50% of the shares in a private unlisted company that company cannot be a related party