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Picture Book · SMSF, family and later life

The sole purpose test

Story pages

A man in his sixties with a grey moustache admiring rows of grapevines in the countryside
Meet Greg. He has an SMSF and loves wine.
A sturdy wooden treasure chest resting in a quiet garden under a tree
An SMSF must be run for one main purpose: providing retirement benefits.
A beach house with its gate closed and a man in his sixties walking past it smiling
So Greg can't drink wine the fund buys, or holiday in a house it owns.
Two separate garden plots divided by a neat low wooden fence
The fund's assets must be kept separate from his own.
Storm clouds gathering over a lighthouse on a rocky coast
Breaking the rules can mean heavy penalties and the fund losing its tax concessions.
A man in his sixties tending a small home vegetable garden on a sunny morning
Greg keeps his hobbies personal and his fund for later life.

The end

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General advice warning. This picture book is general information only. It does not take into account your objectives, financial situation or needs, and it is not personal advice. Rules and thresholds change. Before acting, consider whether it is right for you, read any relevant Product Disclosure Statement and our Financial Services Guide, and seek personal advice. Past performance is not a reliable indicator of future performance.

Information as at 29 October 2026. Sources:

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