Avoiding in-house assets

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One of the most important rules that an SMSF must comply with is the 'in-house assets' rule, which states that the amount of a fund's in-house assets must not exceed 5% of the market value of its total assets. A breach of this rule is a breach of Section 71 of the Superannuation Industry (Supervision) Act.

This rule is tested at the end of each financial year and each time an asset is acquired.

What is an in-house asset?

An ‘in-house’ asset is: