{"id":"F2020L01482","name":"Self Managed Superannuation Funds (COVID-19 Rental income deferrals – In-house Asset Exclusion) Determination 2020","slug":"self-managed-superannuation-funds-covid-19-rental-income-deferrals-in-house-asset-exclusion-determin","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":130725,"registerId":"commonwealth-F2020L01482-current","compilationNumber":null,"startDate":"2026-04-03","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1. Name of instrument","sectionType":"part","heading":"1. Name of instrument","content":"## 1. Name of instrument\n\nThis determination is the Self Managed Superannuation Funds (COVID‑19 Rental income deferrals – In‑house Asset Exclusion) Determination 2020.","sortOrder":0},{"sectionNumber":"2. Commencement","sectionType":"part","heading":"2. Commencement","content":"## 2. Commencement\n\nThis instrument commences the day after it is registered on the Federal Register of Legislation.","sortOrder":1},{"sectionNumber":"3. Application","sectionType":"part","heading":"3. Application","content":"## 3. Application\n\nThis instrument applies to the trustee(s) of a self\\-managed superannuation fund (fund) where the fund acquires or holds an asset that would be an in-house asset as a result of the rent payable under a lease as described in paragraphs 4(a) and (b) being deferred during one or both of the 2019-20 or 2020-21 income years.","sortOrder":2},{"sectionNumber":"4. Determination","sectionType":"part","heading":"4. Determination","content":"## 4. Determination\n\nFor the purposes of paragraph 71(1)(f) of the Superannuation Industry (Supervision) Act 1993, where during one or both of the 2019-20 or 2020-21 income years the fund:\n\n(a) allows a related party to defer the payment of rent under a lease agreement (on arm’s length terms) because of the financial impact of the coronavirus known as COVID‑19 which creates an asset held by the fund, or\n\n(b) holds an asset that is an interest in a company or unit trust which is not an in‑house asset under regulation 13.22B or regulation 13.22C of the Superannuation Industry (Supervision) Regulations 1994, and that company or unit trust allows a tenant to defer the payment of rent under a lease (on arm’s length terms) because of the financial impact of the coronavirus known as COVID‑19\n\nthe asset is not an in‑house asset of the fund in the 2019-20 or 2020-21 years when the rent was deferred nor any future income years.","sortOrder":3},{"sectionNumber":"5. Definitions","sectionType":"part","heading":"5. Definitions","content":"## 5. Definitions\n\nExpressions used in this determination have the same meaning as in the Superannuation Industry (Supervision) Act 1993 and the Superannuation Industry (Supervision) Regulations 1994","sortOrder":4}],"analysis":{"flash_summary":{"complexity_score":3,"scope_assessment":{"changed":true,"description":"Yes. The instrument narrows the application of the in‑house asset rule by excluding assets created by COVID‑19 rent deferrals from being treated as in‑house assets for the specified years, thereby altering how paragraph 71(1)(f) of the Superannuation Industry (Supervision) Act 1993 applies to those transactions (see para 4). The change is limited in time, subject to an arm’s‑length condition, and leaves trustees responsible for documentation and reliance on existing SIS/SISR definitions (see paras 3–5)."},"complexity_factors":["Narrow, time‑limited exemption (only 2019‑20 and 2020‑21 income years) which simplifies scope but requires retrospective identification of transactions (paras 2–4).","Cross‑references to external law: paragraph 71(1)(f) of the Superannuation Industry (Supervision) Act 1993 and regulations 13.22B/13.22C of the SISR — effect depends on those definitions and limits (para 4).","Qualification that deferrals must be on \"arm’s length\" terms — introduces evidentiary and recordkeeping requirements for trustees to demonstrate compliance (para 4(a),(b)).","Applies both to direct related‑party rent deferrals and to indirect situations where the fund holds interests in a company or unit trust that allowed deferrals — requires tracing through entity structures (para 4(b)).","Instrument is short and mechanically simple, but legal effect is determined by interaction with existing SIS/SISR definitions and tests (para 5).","Immediate commencement (day after registration) may create administrative timing pressures for trustees to assemble records (para 2)."],"plain_english_summary":"This determination treats assets that arise when an SMSF (or a company/unit trust it holds) accepts COVID‑19 rent deferrals from related parties or tenants as NOT being \"in‑house assets\" for the 2019‑20 and 2020‑21 income years and any future years. It applies where the deferral is granted on arm’s‑length terms and affects SMSF trustees, who must document and justify rent‑deferral arrangements to rely on the exclusion."},"kimi_summary":{"content_quality":"ok","complexity_score":3,"scope_assessment":{"changed":false,"description":"This instrument maintains a narrow, targeted scope consistent with its original COVID-19 relief purpose. It addresses a specific, time-bound problem (pandemic-related rent deferrals) without expanding into broader superannuation policy areas. The permanent protection for future years is a logical consequence of the temporary relief rather than scope creep, ensuring funds aren't penalised later for pandemic-era decisions."},"complexity_factors":["Only 5 short sections with minimal conditional logic","Single defined term reference (incorporates definitions from primary legislation by reference)","Two straightforward scenarios in paragraph 4(a) and 4(b) with parallel structure","No nested exceptions or complex cross-referencing beyond the primary SIS Act and Regulations","Temporal limitation to specific income years (2019-20 and 2020-21) simplifies application","Relies on external definitions for technical terms like 'in-house asset', 'related party', and 'arm's length terms'"],"plain_english_summary":"This temporary COVID-19 relief measure prevents certain rent deferrals granted during 2019–20 or 2020–21 from being treated as in‑house assets for self‑managed superannuation funds (SMSFs). It covers deferrals by the SMSF itself or by a company/trust the SMSF holds, and the exclusion is permanent for those specific deferrals. \n\nIt protects SMSF trustees who gave related‑party tenants pandemic rent relief from inadvertently breaching in‑house asset rules and facing forced disposals or penalties."},"flash_summary_failed":{"failed":true,"reason":"A positive credit balance is required for all requests, including BYOK, so fallback providers remain available. Add credits at https://vercel.com/d?to=%2F%5Bteam%5D%2F%7E%2Fai%3Fmodal%3Dtop-up to continue.","source":"analysis-cron"}},"importantCases":[],"_links":{"self":"/api/acts/self-managed-superannuation-funds-covid-19-rental-income-deferrals-in-house-asset-exclusion-determin","history":"/api/acts/self-managed-superannuation-funds-covid-19-rental-income-deferrals-in-house-asset-exclusion-determin/history","analysis":"/api/acts/self-managed-superannuation-funds-covid-19-rental-income-deferrals-in-house-asset-exclusion-determin/analysis","conflicts":"/api/acts/self-managed-superannuation-funds-covid-19-rental-income-deferrals-in-house-asset-exclusion-determin/conflicts","importantCases":"/api/acts/self-managed-superannuation-funds-covid-19-rental-income-deferrals-in-house-asset-exclusion-determin/important-cases","documents":"/api/acts/self-managed-superannuation-funds-covid-19-rental-income-deferrals-in-house-asset-exclusion-determin/documents"}}