Show download pdf controls
  • 15d In-house assets

    Did the SMSF hold any in-house assets on 30 June 2017?

    No

    Print X in the No box at A. Go to 15e Limited recourse borrowing arrangements.

    Yes

    Read on.

    • Print X in the Yes box at A.
    • Write at A the total value of the in-house assets on 30 June 2017.
    • Make sure that any amount you include at A are also included at A to T in 15a, 15b and 15c. Do not include at A any related party investments that are not in-house assets.

    Identifying in-house assets

    Generally, an in-house asset of an SMSF is an asset that is:

    • a loan to a related party of the SMSF
    • 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.

    Some in-house asset exceptions do exist, such as a lease or lease agreement, between the SMSF and a related party of the SMSF involving business real property. There is also a limited exception for certain investments in related non-geared unit trusts and companies.

    For more information on what is an in-house asset see:

    • Part 8 of the Superannuation Industry (Supervision) Act 1993
    • 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.

    15e Limited recourse borrowing arrangements

    SMSFs that had a Limited recourse borrowing arrangement (LRBA) must complete:

    • A If the fund had an LRBA, were the LRBA borrowings from a licensed financial institution?
    • B Did members or related parties of the fund use personal guarantees or other security for the LRBA?
    • J Limited recourse borrowing arrangements in item 15b
    • V1 Borrowings for limited recourse borrowing arrangements in item 16

    SMSFs are prohibited from borrowing to invest except in certain limited circumstances. For more information, see Limited recourse borrowing arrangements by self-managed superannuation funds – questions and answers.

    A If the fund had an LRBA, were the LRBA borrowings from a licensed financial institution?

    No

    Print X in the No box. Go to B.

    Yes

    Print X in the Yes box. Go to B.

    A licensed financial institution includes a bank or approved deposit taking institutionExternal Link. Examples of licensed financial institutions include:

    • Australian-owned banks
    • foreign banks (branches or subsidiaries)
    • credit unions
    • building societies
    • authorised non-operating holding companies
    • finance companies.

    Answer 'No' if the fund borrowed money under the LRBA from:

    • a related party of the fund
    • a non-licensed financial institution.

    Also answer 'No' if the fund holds more than one LRBA, and the money to acquire at least one (or part) of an asset has been borrowed from a source other than a licensed financial institution.

    B Did members or related parties of the fund use personal guarantees or other security for the LRBA?

    No

    Print X in the No box. Go to 16 Liabilities.

    Yes

    Print X in the Yes box. Go to 16 Liabilities.

    Answer 'Yes' if:

    • a member of the fund or a related party of the fund has provided a personal guarantee or security for the LRBA
    • the fund holds more than one LRBA, and a member or related party has used a personal guarantee or other security for at least one of the LRBAs.

    16 Liabilities

    The sections in Liabilities are:

    Last modified: 19 Feb 2018QC 51269