The sole purpose test is a legal requirement that all self-managed super funds (SMSFs) must meet to be eligible for the tax concessions normally available to super funds. This means that your SMSF must be maintained for the sole purpose of providing retirement benefits to your members or their dependants if a member dies before retirement. The test is designed to ensure that SMSFs are not used for personal gain or for any other purpose than providing retirement benefits. If your SMSF does not meet the sole purpose test, it may be subject to penalties and additional taxes. For this reason, it is important to ensure that your SMSF complies with the sole purpose test before establishing or maintaining one.