ATO Interpretative Decision
ATO ID 2002/986 (Withdrawn)
Superannuation
Retirement income entities - In-House Assets of a self managed super fundFOI status: may be released
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This ATO ID is withdrawn. Guidance on the issue contained in this ATO ID can be found at the following: In-house assets and transitional rules.This document incorporates revisions made since original publication. View its history and amending notices, if applicable.
This ATOID provides you with the following level of protection:
If you reasonably apply this decision in good faith to your own circumstances (which are not materially different from those described in the decision), and the decision is later found to be incorrect you will not be liable to pay any penalty or interest. However, you will be required to pay any underpaid tax (or repay any over-claimed credit, grant or benefit), provided the time limits under the law allow it. If you do intend to apply this decision to your own circumstances, you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed. You may wish to obtain further advice from the Tax Office or from a professional adviser.
Issue
Will the exemption to the in-house assets rule contained in section 71B of the Superannuation Industry (Supervision) Act 1993 (SISA) apply if the lessee continues to rent a bus from the self managed superannuation fund (SMSF) in accordance with the terms of the old lease.
Decision
Yes. The asset subject to the lease will not be an in-house asset of the SMSF.
Facts
One of the assets of the SMSF is a bus.
The SMSF leases the bus to a related party under a lease agreement entered into prior to 11 August 1999.
Reasons for Decision
Amendments were made to the investment rules of SISA by the Superannuation Legislation Amendment Act 1999 to restrict investments and loans by SMSFs to/in related parties. The amendments apply from 11 August 1999. According to the transitional rules, fund investments and assets subject to leases in place at 11 August 1999 are not subject to the new rules. That is, the assets are not counted as in-house assets, unless they were already included as an in-house asset under the old rules.
As the asset subject to lease between the SMSF and the related party was in place prior to 11 August 1999 the exemption contained in section 71B of SISA applies to exempt the asset from being an in-house asset of the SMSF.
Date of decision: 9 August 2001Year of income: Year ended 30 June 2001
Legislative References:
Superannuation Industry (Supervision) Act 1993
Section 71B
Keywords
SMSF investments
Self Managed Superannuation funds
SMSF related parties
Superannuation fund in house assets
ISSN: 1445-2782
| Date: | Version: | |
| 9 August 2001 | Original statement | |
| You are here | 4 July 2014 | Archived |