SMSF members and trustees are not prevented by the Tax Legislation from purchasing assets owned by their SMSF.  Conversely, only in very limited circumstances can a SMSF purchase an asset from a related party. According to the Australian Taxation Office (ATO) the trustees of a SMSF must ensure when a related party purchases an asset from their SMSF the following is adhered to:

1. Independent valuation report should be sourced prior to the transaction being conducted;

2. A written contract should be in place on commercial terms;

3. The purchase / sale price should reflect a true market value; and

4. The transaction should be conducted on an Arm's length basis. Please refer to:  http://www.ato.gov.au/Super/Self-managed-super-funds/In-detail/News/Super-reform/Valuation-guidelines-for-self-managed-super-funds/

Please note. Arm's length means that the price should be the same had it transaction been conduction by parties not been related.