If the answer to the question is Yes show at label A the value of any in-house assets held by the superannuation fund at any time during the year.
Generally, an in-house asset of a SMSF is an asset of the SMSF that is:
A loan to, or an investment in, a related party of the SMSF
An investment in a related trust of the SMSF, or
Subject to a lease or lease arrangement between the trustee of the SMSF and a related party of the SMSF.
Related parties of an SMSF are all members of the SMSF and their associates, and all standard employer-sponsors of the SMSF and their associates.
Associates of a particular member of the SMSF would include every other member of the SMSF, their relatives, business partners and any companies or trusts that the employer controls (either alone or with their other associates) or companies and trusts that control the employer.
A standard employer-sponsor is an employer who contributes to a superannuation fund for the benefit of a member under an arrangement between the employer and the trustee of the SMSF.
Some in-house asset exceptions do exist, such as a lease or lease agreement, between the SMSF and a related part of the SMSF involving business real property. There is also a limited exception for certain investments in related non-geared trusts and companies.
Do not show at this label any related party investments that are not in-house assets.
Legislative reference: Part 8 of the Superannuation Industry (Supervision) Act 1993.
For further information on ‘what is an in-house asset’ refer to:
- Self-Managed Superannuation Funds Ruling SMSFR 2009/4
- Self-Managed Superannuation Funds: the meaning of asset', 'loan', 'investment in', 'lease' and 'lease arrangement' in the definition of an 'in-house asset'
in the Superannuation Industry (Supervision) Act 1993.
