In-house assets and transitional rules

Pre 11 August 1999: leases and lease arrangements

An asset you hold on behalf of your SMSF that is subject to a lease or lease arrangement entered into between your SMSF and a related party by 11 August 1999 is not considered an in-house asset. However, the lease must be a continuous one or must be renewed with no gaps between periods of the leases.

The terms and conditions of a renewed lease don't need to be the same, but the lease must be for the same asset.

The exemption will apply if a legally enforceable lease or lease arrangement came into force after 11 August 1999, but the agreement was entered into on or before 11 August 1999.

If a renewed lease or lease arrangement is for a new asset, or there is a gap between lease renewals, the market value of the asset is counted as an in-house asset.

Sections within What are the transitional rules?

• Between 11 August and 23 December 1999
• Reinvesting earnings
• Unpaid trust distributions
• Geared investments
• Pre 11 August 1999 investments and loans
• Pre 11 August 1999: leases and lease arrangements