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Hi Martin
Thanks.
SMSF's in the past were often established with a Principal Employer (or an Employer Sponsor) as part of the deed.
A Principal Employer relates back to old legislation when an employer and the trustee of the SMSF had an agreement in relation to the making of contributions.
A related party includes an employer sponsor and an associate of an employer sponsor. An employee would not normally be a related party of the employer sponsor if they do not majority own or control it.
An article that covers this issue is found at:
Are you able to explain your query further if the above does not assist?
Thanks
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