The ins and outs of in-house assets

National Conference 2021

Most SMSF practitioners are aware there’s a limit that applies to the amount of in-house assets an SMSF can hold. But … what assets are actually considered an in-house asset? And, just as importantly, what assets aren’t? And why do we care?

We’ll explore what the limit applies to and when, what needs to be done if the limit is exceeded and whether or not a breach of the superannuation law has occurred, and what action the Regulator could take if there has been a breach. Along the way, we’ll highlight some handy tips that may help prevent the limit being exceeded, and alert you to some traps to avoid.

At the end of the session, you will be able to:

• Identify which assets are/would be an in-house asset;
• Correctly apply the in-house asset exceptions to assets acquired/held by an SMSF;
• Determine the value of any in-house assets, understand when this value is measured against the in-house assets threshold, and identify when the in-house asset threshold is exceeded;
• Understand what needs to happen when the in-house asset threshold is exceeded, and be able to articulate this and an appropriate course of action to the SMSF’s trustee, and;
• Understand the risks of non-compliance with the in-house asset rules and be able to articulate the consequences of non-compliance to the SMSF’s trustee identify and apply advanced succession planning techniques involving testamentary trusts, superannuation pensions, binding death benefit nominations and much more.