SMSF main DON’TS are:
DO NOT allow the fund to borrow money from any person, unless strictly in accordance with the limited recourse borrowing laws.
DO NOT allow the fund’s bank account to go into overdraft.
DO NOT borrow money from the fund or use the fund’s money to pay for anyone else’s expenses.
DO NOT lend, invest or enter into a lease arrangement in respect of more than 5% of the fund’s assets with a related party.
DO NOT acquire more than 5% of the fund’s assets from a related party unless the asset acquired is business real property, or property that is used wholly and exclusively in the conduct of a business or businesses.
DO NOT accept contributions which exceed the caps for concessional and non-concessional contributions.
DO NOT accept contributions in respect of members who are over 65 years of age except mandated employer contributions or if the member is employed at least part time.
DO NOT accept contributions in respect of members who are over 70 years of age except mandated employer contributions or if the member is employed at least part time, and the contributions are received by the day which is 28 days after the end of the month in which the member turns 75.
DO NOT accept contributions in respect of members who are over 75 years of age except mandated employer contributions.
