Superannuation and COVID-19: Relaxation of the in-house asset 5% test

The ATO has also confirmed that it will take no compliance action if the 5% limit is exceeded as at 30 June 2020.

The in-house asset rules provide that if an SMSF’s in-house assets exceed 5% at any 30 June, then by the following 30 June the SMSF trustee must effectively make and implement a plan to sell in-house assets to the extent the SMSF is above the 5% limit.

If the rectification plan is unable to be executed by 30 June 2021, the ATO has stated it will not enforce where the market has not recovered or it was unnecessary to implement the plan due to the market recovering.

For further information or queries please contact:

Rod Payne
Principal
T: 03 5226 8541
E: rpayne@ha.legal

Alasdair Woodford
Senior Associate
T: 03 5225 5217
E: awoodford@ha.legal