An in house asset is defined in Section 71 of Superannuation Industry Supervision Act 1993 (SISA 1993) as an asset of the fund that is:

-    A loan to a related party;

-    An investment in a related party;

-    An investment in a related trust;

-    An asset of the fund that is subject to a lease or lease arrangement between the trustee of the fund and a related party of the fund.  

Concerning the above there are a number of exclusions including:

-    Business Real Property that is subject to a lease;

-    Property owned by the SMSF and a related party as tenants in common; and

-    An Un geared company or trust.  

If an asset is deemed to be an 'in-house asset' then its market value must not exceed 5% of the market value of the entire SMSF.

If you would like to discuss further please contact us:
McNamara and Co - Chartered Accountants, located minutes from the Melbourne CBD
www.mcnamaraandcompany.com.au/contact-us
Phone +61 3 9428 1062
Email admin@mcnamaraandco.com

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