Item 15b - Australian direct investments
This section covers investments which are located in Australia and where the SMSF directly holds the assets, either in the name of the SMSF or in another legally recognised format.
Show at label E the value in Australian currency of all cash accounts and term deposits held by the SMSF (including accounts with financial institutions or other like organisations) with all Australian financial institutions.
This section covers investments located in Australia and where the SMSF directly holds the assets, either in the name of the SMSF or in another legally recognised format.
Show at label F the value of any debt securities that are traded or available inside Australia by the SMSF.
Debt securities are typically financial securities which establish ownership and represent borrowings that must be repaid by the issuer.
They include negotiable instruments such as:
bonds,
bills of exchange,
promissory notes or share certificates which are trade in the financial markets.
Some securities may consist of a combination of two or more financial instruments. These are called hybrid securities and can have a combination of:
bonds or notes,
swaps,
forward or future contracts, and
options.
Include the value of any hybrid securities at label F.
This section covers investments located in Australia and where the SMSF directly holds the assets, either in the name of the SMSF or in another legally recognised format.
Show at label G the value of any loans held or negotiated within Australia by the SMSF.
Show at label H the value of any public shares and equities within Australia by the SMSF and traded on the Australian Stock Exchange.
This category relates to shares, equities and similar financial contracts that are traded on the Australian Stock Exchange, excluding debt securities.
Do not show investments in listed trusts at label H. These should be included at label A - Listed trusts.
If you enter an amount at label I, then you must also enter an amount at label U Net non-arm's length income item 11.
Show at label I the value of any private shares held within Australia by the SMSF that are not listed on the Australian Stock Exchange.
This category refers to shares, equities and similar financial contracts that are not listed on Australian stock exchanges but are located in Australia.
Do not show investments in unlisted trusts at label I, these should be included at label B Unlisted trusts.
For more information, see Limited recourse borrowing arrangements - Q&A on the ATO website.
Labels J1 to J7
SMSFs are prohibited from borrowing to invest except in certain limited circumstances permitted under section 67 of the SISA. Although the trustee of a SMSF may enter into certain limited-recourse borrowings if the conditions in subsection 67A(1) and other provisions of the SISA, as well as related superannuation rules, are satisfied.
The labels J1 to J6 are to dissect the amount at label J. Include at these labels the value of each type of asset that is the SMSF’s beneficial interest in assets held under limited recourse borrowing arrangements (including instalment warrants).
Such amounts should not be reported again at any other asset or liability label in Section H items 15 and 16. For example, if overseas shares are held under a limited recourse borrowing arrangement, the amount would be recorded at J5 and not at item15c label P Overseas shares.
Label J
Label J shows the value of the SMSF's beneficial interest in assets held under limited recourse borrowing arrangements (which includes instalment warrants) that the SMSF had. Do not include the amount at label J in any of the other asset labels from A to T.
Trustees must not borrow or maintain a borrowing for purposes outside those permitted under section 67 of the Superannuation Industry Supervision Act (SISA) 1993.
Exceptions to the general prohibition include:
Short-term borrowing to pay beneficiaries,
To pay superannuation surcharge, or
To cover settlement of securities transactions, or
To allow the SMSF trustee to acquire an asset under certain limited-recourse arrangements.
The ATO recommends that you seek independent professional advice if the SMSF is considering these arrangements.
Refer to:
Self-Managed Superannuation Funds Ruling SMSFR 2009/2 Self-Managed Superannuation Funds: the meaning of 'borrow money' or 'maintain an existing borrowing of money' for the purposes of section 67 of the Superannuation Industry (Supervision) Act 1993.
Taxpayer Alert 2008/5 Certain borrowing arrangements by self-managed superannuation funds, The fact sheet Limited recourse borrowing arrangements by self-managed funds. Draft Self-Managed Superannuation Funds Ruling SMSFR 2011/D1 Self-Managed superannuation Funds: limited recourse borrowing arrangements - application of key concepts.
For information about the exception provided to certain limited-recourse borrowings under subsection 67(4A) of the SISA is provided on www.ato.gov.au in Taxpayer Alert 2008/5 certain borrowings by self-managed superannuation funds and the fact sheet Limited recourse borrowing arrangements by self-managed superannuation funds - questions and answers.
Legislative reference: Section 67 of the Superannuation Industry (Supervision) Act 1993.
Show at label K the value of any non-residential real property owned by the SMSF located inside Australia.
Non-residential real property includes investments in land and buildings that are located within Australia that are used for commercial or business purposes. This includes any premises that are used for both commercial purposes and as a place of residence.
Show non-residential real property located outside Australia in the overseas assets category, label Q Overseas non-residential real property.
Show at label L the value of any residential real property owned by the SMSF located inside Australia.
Residential property means a building which is lawfully occupied as a place of residence or is suitable for occupation as a place of residence. If the premises is suitable for occupation as a place of residence but is used for commercial purposes, report this property at label K Non-residential real property.
Show investments in real property located outside Australia in the overseas assets category, label R Overseas residential real property.
Show at label M the total value of any collectables and personal use asset investments held by the SMSF involving:
artwork (within the meaning of the ITAA 1997); or
jewellery; or
antiques; or
artefacts; or
coins or medallions or bank notes; or
postage stamps or first day covers; or
rare folios, manuscripts or books; or
memorabilia; or
wine or spirits; or
motor vehicles; or
recreational boats; or
memberships of sporting or social clubs.
Artwork includes a painting, sculpture, drawing, engraving or photograph or a reproduction of one of these things and any property of a similar description or use.
Coins and bank notes are collectables if their value exceeds their face value.
Spirits can include (but not limited to) whiskey, gin, vodka, tequila, brandy and rum where their purchase is considered an investment.
Show at label O the total value of any other assets owned by the SMSF that do not fall within any of the other categories but are located in Australia.
Include at this label derivatives.
Do not show instalment warrants here - show them at label J Limited recourse borrowing arrangements.