From www.smsfadviser.com: The Bendel decision may affect SMSFs regarding in-house assets, particularly involving loans to related parties, according to legal expert Shaun Backhaus.

He explains that the SIS Act’s broader definition of “loan” encompasses various financial arrangements beyond traditional lending, which could complicate investments in unit trusts for SMSFs.

Backhaus emphasises the importance of regulatory distinctions between “loan” and “borrowing” to avoid adverse implications for unit trusts associated with SMSFs.