SMSF In-House Assets

SMSF and In-Houses Assets

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When managing our Self Managed Super Fund (SMSF) it’s important to ensure that your in-house assets aren’t more than 5% of your SMSF’s total assets.

An in-house asset is:

  • a loan to, or an investment in, a related party of your fund (that includes: members of your fund, trustees, associates of fund members; relatives, business partners, spouses or children, any company the member or their associates control, any trust the member /or associates control, standard employer-sponsors or their associates)
  • an investment in a related trust of your fund
  • an asset of your fund that is leased to a related party

There are some exceptions though:

  • Business property that is leased between your fund and a related party of your fund.
  • Some investments in related non-geared trusts or companies.

If your in-house assets exceeds 5% of your total SMSF assets, trustees must prepare a written plan to reduce the ratio to less than the 5% threshold. That plan must be prepared before the end of the next year of income.

If you have any questions about your SMSF  be sure to get in contact with us at STS Accounting.