In-house assets and transitional rules

What changed after 30 June 2009?

After 30 June 2009, if your SMSF had investments with related parties or related trusts that were made before 11 August 1999, your SMSF would no longer be able to:

• reinvest any earnings from those assets
• pay up any partly paid shares or units
• make any additional investments in relation to those assets.

If you continued to reinvest earnings or make additional investments or loans after 30 June 2009 on behalf of your SMSF, the additional investments or loans would be in-house assets that count towards the 5% limit.

If there is an outstanding debt, as covered in section 71E of the SIS Act, any investment in the unit trust or company made after 30 June 2009 would be an in-house asset.

If you paid up partly paid shares or units after 30 June 2009 on behalf of your SMSF, a proportion of those shares or units (equivalent to the proportion of the payments made after 30 June 2009) would be treated as in-house assets.

For more information about trust distribution, see our determination SMSFD 2007/1.

Sections within Overview

• What is an in-house asset?
• What transitional provisions apply to in-house assets?
• What changed after 30 June 2009?
• What remained the same after 30 June 2009?