Section H: Assets and liabilities – items 15 and 16

About Section H

You must complete Section H.

The SMSF's total assets must equal its total liabilities, that is, the amount at label U Total Australian and overseas assets must equal the amount at label Z Total liabilities.

Write the market value of the assets, as shown in the SMSF’s balance sheet (also known as the SMSF’s statement of financial position) at 30 June 2024.

For more information, see Valuation guidelines for self-managed super funds.

15a Australian managed investments

15a Australian managed investments covers the SMSF’s investment in entities that make subsequent investments on behalf of the SMSF.

If the entity in which the SMSF has invested is located or registered in Australia, then the SMSF’s investment in that entity is recorded at labels A, B, C or D. The 4 labels under item 15a Australian managed investments relate to:

• A Listed trusts
• B Unlisted trusts
• C Insurance policy
• D Other managed investments.

A Listed trusts

A listed trust is a trust which has its units traded on an Australian stock exchange, and the unit values are reported as shares.

Did the SMSF own any units in an Australian listed trust?

• No – Leave label A blank. Go to label B.
• Yes – Read on.

Write at label A the value (on 30 June 2024) of listed trust units owned by the SMSF. Don't include at label A the value of units in listed trusts that are held on trust under a limited recourse borrowing arrangement (include the value of these at label J6 Other in item 15b).

B Unlisted trusts

Unlisted trusts are trusts that are not traded or purchased through an Australian stock exchange.

Did the SMSF own any units in an Australian unlisted trust?

• No – Leave label B blank. Go to label C.
• Yes – Read on.

Write at label B the value (on 30 June 2024) of unlisted trust interests held by the SMSF that were registered or located in Australia.

If the SMSF is complying and received a share of net income from the trust that is non-arm's length income, you must also include the distributions in Section B, item 11 – label U2 Net non-arm's length trust distributions.

Don't include at label B the value of units in unlisted trusts that are held on trust under a limited recourse borrowing arrangement (include the value of these at label J6 Other in item 15b).

C Insurance policy

Did the SMSF own any life insurance policies that were issued by an organisation registered under the Life Insurance Act 1995?

• No – Leave label C blank. Go to label D.
• Yes – Read on.

Write at label C the value (on 30 June 2024) of life insurance policies owned by the SMSF that were issued by an organisation registered under the Life Insurance Act 1995.

Don't include at label C the value of insurance policies that are held on trust under a limited recourse borrowing arrangement (write the value of these at label J6 Other in item 15b).

D Other managed investments

Did the SMSF own any other Australian managed investments?

• No – Leave label D blank. Go to item 15b.
• Yes – Read on.

Write at label D the value (on 30 June 2024) of the SMSF's other investments in entities located or registered in Australia that:

• invest on behalf of the SMSF
• you didn't include at labels A Listed trusts, B Unlisted trusts or C Insurance policy above.

This asset category includes investments with all external investment managers and pooled superannuation trusts (PSTs) located or registered in Australia.

An external investment manager is a person appointed by the trustee of the SMSF in accordance with Section 124 of the Superannuation Industry (Supervision) Act 1993 to make investments on behalf of the SMSF. Investments managed by an external investment manager are called managed funds.

A managed fund that is registered in Australia is an Australian managed investment even if it invests in overseas assets.

Don't include at label D the value of any Australian managed investments that were held on trust under a limited recourse borrowing arrangement (write the value of these at label J6 Other in item 15b).

15b Australian direct investments

15b Australian direct investments covers investments located in Australia where the SMSF directly holds the assets, either in the name of the SMSF or in another legally recognised format.

The labels in 15b Australian direct investments are:

• E Cash and term deposits
• F Debt securities
• G Loans
• H Listed shares
• I Unlisted shares
• J1 to J6 and J Limited recourse borrowing arrangements
• K Non-residential real property
• L Residential real property
• M Collectables and personal use assets
• O Other assets.

E Cash and term deposits

Did the SMSF own any cash or term deposits?

• No – Leave label E blank. Go to label F.
• Yes – Read on.

Write at label E the value (on 30 June 2024) in Australian currency of all cash accounts and term deposits held by the SMSF with Australian financial institutions (or other similar organisations).

Examples include money market funds and cash management trusts.

Don't include holdings in crypto assets at label E. Include these assets at Other investments label N Crypto-asset For more information about crypto assets, see Crypto asset investments.

F Debt securities

Debt securities:

• are typically financial securities which establish ownership and represent borrowings that must be repaid by the issuer
• include negotiable instruments such as bonds, bills of exchange, promissory notes and share certificates which are traded in financial markets
• may consist of a combination of 2 or more financial instruments. These debt securities are called hybrid securities. They can combine bonds or notes, swaps, forward or futures contracts and options.

Did the SMSF own any debt securities?

• No – Leave label F blank. Go to label G.
• Yes – Read on.

Write at label F the value (on 30 June 2024) of debt securities or hybrid securities, held by the SMSF, that are traded or available in Australia.

Don't include at label F the value of debt securities held on trust under a limited recourse borrowing arrangement. Include the value of these securities at label J6 Other in item 15b.

G Loans

Did the SMSF have any Australian loans (where the SMSF is the lender)?

• No – Leave label G blank. Go to label H.
• Yes – Read on.

Write at label G the total value (on 30 June 2024) of loans where both:

• the SMSF is the lender
• the SMSF entered into or finalised the loan in Australia.

H Listed shares

Did the SMSF own any public shares and equities that are traded on Australian stock exchanges?

• No – Leave label H blank. Go to label I.
• Yes – Read on.

Write at label H the value (on 30 June 2024) of public shares and equities held by the SMSF that are traded on Australian stock exchanges. These include shares, equities and similar financial contracts that are traded on Australian stock exchanges.

Don't include at label H:

• debt securities (include these at label F Debt securities)
• investments in listed trusts (include these at label A Listed trusts)
• listed shares held on trust under a limited recourse borrowing arrangement (include these at label J4 Australian shares).

I Unlisted shares

Did the SMSF own any unlisted shares, equities or similar financial contracts that are not traded on Australian stock exchanges?

• No – Leave label I blank. Go to label J1 to J7 and J Limited recourse borrowing arrangements.
• Yes – Read on.

Write at label I the value (on 30 June 2024) of shares, equities and similar financial contracts held by the SMSF that are not listed on Australian stock exchanges.

Don't include at label I:

• investments in unlisted trusts here (include these at label B Unlisted trusts in item 15a)
• unlisted shares that are held on trust under a limited recourse borrowing arrangement (include the value of these at label J4 Australian shares in item 15b).

If the SMSF is complying and non-arm's length dividends were paid to the SMSF from a private company include them at Section B, item 11 – label U1 Net non-arm's length private company dividends.

J1 to J7 and J Limited recourse borrowing arrangements

Did the SMSF have a beneficial interest in any assets that were held on trust as security under a limited recourse borrowing arrangement?

• No – Leave labels J1 to J7 and J blank. Go to label K.
• Yes – Read on.

Write at labels J1 to J6 the value (on 30 June 2024) of assets beneficially held by the SMSF in a trust as security for a borrowing of money under a limited recourse borrowing arrangement, including instalment warrants.

• The amounts you write at labels J1 to J6 are the values of the assets held on trust under limited recourse borrowing arrangements and not the amounts borrowed or the amount of outstanding borrowings.
• Write the value of the outstanding borrowings under the limited recourse borrowing arrangements at item 16 Liabilities – label V1.
• Don't include the amounts you write at labels J1 to J6 at any other asset item in Section H. For example, if the SMSF holds a beneficial interest in overseas shares on trust under a limited recourse borrowing arrangement, record the value of the shares at label J5 and not at label P Overseas shares at item 15d.

SMSFs are prohibited from borrowing to invest except in certain limited circumstances. For more information, see Limited recourse borrowing arrangements – questions and answers.

J1 Australian residential real property

Did the SMSF have a beneficial interest in any Australian residential real property that was held on trust as security under a limited recourse borrowing arrangement?

• No – Leave label J1 blank.
• Yes – Read on.

Write at label J1 the value (on 30 June 2024) of the SMSF's beneficial interest in residential real property that is both:

• located in Australia
• held in a trust as security for a borrowing under a limited recourse borrowing arrangement.

J2 Australian non-residential real property

Did the SMSF have a beneficial interest in any Australian non-residential real property that was held on trust as security under a limited recourse borrowing arrangement?

• No – Leave label J2 blank.
• Yes – Read on.

Write at label J2 the value (on 30 June 2024) of the SMSF's beneficial interest in non-residential real property that is both:

• located in Australia
• held in a trust as security for a borrowing under a limited recourse borrowing arrangement.

J3 Overseas real property

Did the SMSF have a beneficial interest in any overseas real property that was held on trust as security under a limited recourse borrowing arrangement?

• No – Leave label J3 blank.
• Yes – Read on. 

Write at label J3 the value (on 30 June 2024) of the SMSF's beneficial interest in residential and non-residential real property that is both:

• located overseas
• held in a trust as security for a borrowing under a limited recourse borrowing arrangement.

J4 Australian shares

Did the SMSF have a beneficial interest in any Australian shares that were held on trust as security under a limited recourse borrowing arrangement?

• No – Leave label J4 blank. Go to label J5.
• Yes – Read on.

Write at label J4 the value (on 30 June 2024) of the SMSF's beneficial interest in public shares, unlisted shares, equities and similar financial contracts that are held in a trust as security for a borrowing under a limited recourse borrowing arrangement.

Don't include:

• derivatives (include these at label O Other assets)
• a beneficial interest in debt securities that is held under a limited recourse borrowing arrangement (include these at label J6 Other).

J5 Overseas shares

Did the SMSF have a beneficial interest in any overseas shares that were held on trust as security under a limited recourse borrowing arrangement?

• No – Leave label J5 blank. Go to label J6.
• Yes – Read on.

Write at label J5 the value (on 30 June 2024) of the SMSF's beneficial interest in public and private shares, equities and similar financial contracts that are both:

• traded on overseas stock exchanges
• held in a trust as security for a borrowing under a limited recourse borrowing arrangement.

Don't include:

• derivatives (include these at label O Other assets)
• a beneficial interest in debt securities that is held under a limited recourse borrowing arrangement (include these at label J6 Other).

J6 Other

Did the SMSF have a beneficial interest in any other assets that were held on trust as security under a limited recourse borrowing arrangement?

• No – Leave label J6 blank. Go to label J7.
• Yes – Read on.

Write at label J6 the value (on 30 June 2024) of the SMSF's beneficial interest in other assets that:

• are held in a trust as security for a borrowing under a limited recourse borrowing arrangement
• don't fall within any of the categories in labels J1 to J5.

J7 Property count

Did the SMSF have any properties held in trust as security under a limited recourse borrowing arrangement at labels J1, J2, or J3?

• No – Leave label J7 blank. Go to label J.
• Yes – Read on.

Write at label J7 the total number of real properties that are a single acquirable asset the fund has an interest in that has been reported at labels J1, J2 and J3.

• Each distinct property that the SMSF has an interest in should be reported. A fractional interest in a property is to be reported as one property.
• Where the SMSF has interests in 1,000 or more properties, report 999.

J Limited recourse borrowing arrangements

Write at label J the total of labels J1 to J6.

If you report an amount here, you must also complete:

• labels A and B at item 15f Limited recourse borrowing arrangements
• label V1 Borrowings for limited recourse borrowing arrangements at item 16 Liabilities.

K Non-residential real property

Did the SMSF own any Australian non-residential real property?

• No – Leave label K blank. Go to label L.
• Yes – Read on.

Write at label K the value (on 30 June 2024) of the SMSF's non-residential real property that is located in Australia.

Don't include at label K non-residential real property that is held on trust under a limited recourse borrowing arrangement (write the value of these at label J2).

L Residential real property

Did the SMSF own any Australian residential real property?

• No – Leave label L blank. Go to label M.
• Yes – Read on.

Write at label L the value (on 30 June 2024) of the SMSF's residential real property that is located in Australia.

Don't include at label L residential real property that is held on trust under a limited recourse borrowing arrangement (write the value of these at label J1).

M Collectables and personal use assets

Did the SMSF own any collectables or personal use assets?

• No – Leave label M blank. Go to label O.
• Yes – Read on.

Write at label M the total value (on 30 June 2024) of the SMSF's collectable and personal use asset investments.

Collectable and personal use asset include:

• artwork
• jewellery
• antiques
• artefacts
• coins, medallions and bank notes
• postage stamps and first day covers
• rare folios, manuscripts and books
• memorabilia
• wine and spirits
• motor vehicles
• recreational boats
• memberships of sporting and social clubs.

Artwork includes a painting, sculpture, drawing, engraving or photograph or a reproduction of one of these things and any property of a similar description or use.

Coins and bank notes are collectables if their value exceeds their face value.

Spirits can include (but is not limited to) whiskey, gin, vodka, tequila, brandy and rum where their purchase is considered an investment.

Don't include collectables and personal use assets that are held on trust under a limited recourse borrowing arrangement at label M (write the value of these at label J6).

O Other assets

Did the SMSF own any other assets that are located in Australia?

• No – Leave label O blank. Go to label 15c.
• Yes – Read on.

Write at label O the value (on 30 June 2024) of the SMSF's other assets that are both:

• located in Australia
• were not included at labels A to M.

Include the value of derivatives at label O.

Don't include instalment warrants at label O. Include them at labels J1 to J6.

15c Other investments

Did the SMSF own any crypto- asset as an investment?

• No – Leave label N blank. Go to item 15d.
• Yes – Read on.

Write at label N the value (on 30 June 2024) of the SMSF's crypto- asset investment.

For more information, see SMSF investing in crypto assets.

15d Overseas direct investments

15d Overseas direct investments covers the SMSF's direct investments that are located outside Australia. It includes overseas direct investments where the entities invested in make subsequent investments in Australian markets. If the SMSF has an investment which is in an entity that is not an Australian-regulated entity, include the investment at labels P, Q, R, S or T.

If the SMSF has investments in Australian-regulated entities that make subsequent investments on behalf of the SMSF, don't include the investments here at item 15d (include them at labels A to O in items 15a and 15b).

The labels in 15d Overseas direct investments are:

• P Overseas shares
• Q Overseas non-residential real property
• R Overseas residential real property
• S Overseas managed investments
• T Other overseas assets.

P Overseas shares

Did the SMSF own any public and private shares, equities and similar financial contracts that are traded on an overseas stock exchange?

• No – Leave label P blank. Go to label Q.
• Yes – Read on.

Write at label P the value (on 30 June 2024) of the SMSF's public and private shares, equities and similar financial contracts that are traded on an overseas stock exchange.

Don't include:

• debt securities (include these at label T Other overseas assets)
• investments in listed or unlisted trusts (include these at label S Overseas managed investments)
• overseas shares that are held on trust under a limited recourse borrowing arrangement (include these at label J5 in item 15b).

Q Overseas non-residential real property

Did the SMSF own any non-residential real property that is located outside Australia?

• No – Leave label Q blank. Go to label R.
• Yes – Read on.

Write at label Q the value (on 30 June 2024) of the SMSF's non-residential real property that is located outside Australia.

Don't include at label Q the value of overseas non-residential real property that is held on trust under a limited recourse borrowing arrangement (include the value of these properties at label J3 in item 15b).

R Overseas residential real property

Did the SMSF own any residential real property that is located outside Australia?

• No – Leave label R blank. Go to label S.
• Yes – Read on.

Write at label R the value (on 30 June 2024) of the SMSF's residential real property that is located outside Australia.

Don't include at label R the value of overseas residential real property that is held on trust under a limited recourse borrowing arrangement (include the value of these properties at label J3 in item 15b).

S Overseas managed investments

Did the SMSF own any managed investments with investment managers located outside Australia?

• No – Leave label S blank.
  
  Go to label T.
• Yes – Read on.

Write at label S the value (on 30 June 2024) of the SMSF's managed investments with investment managers located outside Australia.

This category includes investments with all external investment managers located overseas. An external investment manager is someone appointed by the trustee of the SMSF in accordance with Section 124 of the Superannuation Industry (Supervision) Act 1993 to make investments on behalf of the SMSF. Investments managed by an external investment manager are often called managed funds.

Don't include at label S:

• investments in a managed fund that is registered or located in Australia where the managed fund invests in overseas assets (include their value at item 15a – label D Other managed investments)
• overseas managed investments that are held on trust under a limited recourse borrowing arrangement (include their value at item 15b – label J6).

T Other overseas assets

Did the SMSF own any other assets located outside Australia?

• No – Leave label T blank. Go to label U.
• Yes – Read on.

Write at label T the value (on 30 June 2024) of the SMSF's other assets that are located outside Australia and could not be included at labels P to S.

Don't include at label T other overseas assets that are held on trust under a limited recourse borrowing arrangement at label T (include the value of these assets at item 15b – label J6).

U Total Australian and overseas assets

Write at label U the total of labels A to T (including label J but not including labels J1 to J6).

If the total of labels A to T is negative, write 0 (zero) at label U.

If the total of labels A to T is zero (that is, the SMSF has no assets) write 0 (zero) at label U.

An SMSF that has no assets must be wound up. If the SMSF has no assets it must have answered Yes in Section A at item 9 Was the fund wound up during the income year?

15e In-house assets

Did the SMSF hold any in-house assets on 30 June 2024?

• No – Print X in the No box at label A. Go to item 15f Limited recourse borrowing arrangements.
• Yes – Read on.

Print X in the Yes box at label A.

Write at label A the total value of the in-house assets on 30 June 2024.

Don't include at label A any related party investments that are not in-house assets.

Make sure that any amount you include at label A are also included at labels A to T in items 15a, 15b, 15c and 15d.

Identifying in-house assets

Generally, an in-house asset of an SMSF is an asset that is:

• a loan to a related party of the SMSF
• an investment in a related party of the SMSF
• an investment in a related trust of the SMSF
• subject to a lease or lease arrangement between the trustee of the SMSF and a related party of the SMSF.

Some in-house asset exceptions do exist, such as a lease or lease agreement, between the SMSF and a related party of the SMSF involving business real property. There is also a limited exception for certain investments in related non-geared unit trusts and companies.

For more information on what is an in-house asset, see:

• Part 8 of the Superannuation Industry (Supervision) Act 1993
• SMSFR 2009/4 Self-Managed Superannuation Funds: the meaning of ‘asset’, ‘loan’, ‘investment in’, ‘lease’ and ‘lease arrangement’ in the definition of an ‘in-house asset’ in the Superannuation Industry (Supervision) Act 1993.

15f Limited recourse borrowing arrangements

SMSFs that had a Limited recourse borrowing arrangement (LRBA) must complete labels:

• A If the fund had an LRBA, were the LRBA borrowings from a licensed financial institution?
• B Did members or related parties of the fund use personal guarantees or other security for the LRBA?
• J Limited recourse borrowing arrangements at item 15b
• V1 Borrowings for limited recourse borrowing arrangements at item 16.

SMSFs are prohibited from borrowing to invest except in certain limited circumstances. For more information, see Limited recourse borrowing arrangements – questions and answers.

If the limited recourse borrowing arrangements is zero or blank at labels J1, J2, J3, J4, J5, J6 and J7, don't mark any checkbox at item 15f – labels A or B. This will avoid processing delays.

A If the fund had an LRBA, were the LRBA borrowings from a licensed financial institution?

• No – Print X in the No box. Go to label B.
• Yes – Print X in the Yes box. Go to label  B.

A licensed financial institution includes a bank or authorised deposit-taking institutionExternal Link. Examples of licensed financial institutions include:

• Australian-owned banks
• foreign banks (branches or subsidiaries)
• credit unions
• building societies
• authorised non-operating holding companies
• finance companies.

Answer No if the fund borrowed money under the LRBA from:

• a related party of the fund
• a non-licensed financial institution.

Also answer No if the fund holds more than one LRBA, and the money to acquire at least one (or part) of an asset has been borrowed from a source other than a licensed financial institution.

B Did members or related parties of the fund use personal guarantees or other security for the LRBA?

• No – Print X in the No box. Go to item 16 Liabilities.
• Yes – Print X in the Yes box. Go to item 16 Liabilities.

Answer Yes if:

• a member of the fund or a related party of the fund has provided a personal guarantee or security for the LRBA
• the fund holds more than one LRBA, and a member or related party has used a personal guarantee or other security for at least one of the LRBAs.

16 Liabilities

The labels in item 16 Liabilities are:

• V1, V2, V3 and V Borrowings
• W Total member closing account balances
• X Reserve accounts
• Y Other liabilities
• Z Total liabilities.

V1 V2, V3 and V Borrowings

Did the SMSF have any outstanding borrowings (where the SMSF is the borrower)?

• No – Leave labels V1, V2, V3 and V blank. Go to label W.
• Yes – Read on.

Write at labels V1 to V3 the total value of each type of outstanding borrowing by the SMSF (including accrued interest) on 30 June 2024.

SMSFs are prohibited from borrowing to invest except in certain limited circumstances. For more information, see Limited recourse borrowing arrangements – questions and answers.

V1 Borrowings for limited recourse borrowing arrangements

Did the SMSF have any outstanding borrowings held under limited recourse borrowing arrangements?

• No – Leave label V1 blank. Go to label V2.
• Yes – Read on.

Write at label V1 the value of outstanding borrowings held under all limited recourse borrowing arrangements at 30 June 2024.

Don't include the value of the assets held under the limited recourse borrowing arrangement here. The values of the assets held on trust under limited recourse borrowing arrangements are to be included at labels J1 to J6 and the total at item 15b – label J.

If the SMSF reports borrowings for an LRBA at label V1, it must also report at labels:

• J Limited recourse borrowing arrangements at item 15b
• A and B at item 15f.

V2 Permissible temporary borrowings

Did the SMSF have any permissible temporary borrowings?

• No – Leave label V2 blank. Go to label V3.
• Yes – Read on.

Write at label V2 the value (on 30 June 2024) of any permissible temporary borrowings held by the SMSF.

Permissible temporary borrowings are those borrowings allowed under subsections 67(2), (2A) and (3) of the Superannuation Industry (Supervision) Act 1993, and include:

• borrowing money for a maximum of 90 days to meet benefit payments due and required to be made to members, or to meet an outstanding superannuation surcharge liability (where, in either case, the SMSF would not be able to make such a payment without the borrowing), provided the borrowing does not exceed 10% of the value of the SMSF's total assets
• borrowing money for a maximum of 7 days to cover the settlement of certain security transactions (where, at the time the relevant investment decision was made, it was likely that the borrowing would not be required), provided the borrowing does not exceed 10% of the value of the SMSF's total assets.

V3 Other borrowings

Did the SMSF have any other outstanding borrowings?

• No – Leave label V3 blank. Go to label V.
• Yes – Read on.

Write at label V3 the value (on 30 June 2024) of all other borrowing amounts.

V Borrowings

Write at label V the total of labels V1, V2 and V3.

W Total member closing account balances

Was the SMSF wound up during 2023–24?

• No – Write at label W the total value of all member account balances on 30 June 2024.
  
  The amount at label W must equal the total of all the label S Closing account balance amounts in Sections F and G.
• Yes – Leave label W blank.
  
  You must have answered Yes in Section A at item 9 Was the fund wound up during the income year?
  
  Go to X.

If you have used a contribution reserve strategy for concessional contributions as described in Taxation Determination TD 2013/22, then ensure that the amount you work out and write at W includes the contributions that were received in 2023–24, even where they were not allocated to a member's account until the following financial year.

X Reserve accounts

Did the SMSF have any assets not allocated to members on 30 June 2024?

• No – Leave label X blank. Go to label Y.
• Yes – Read on.

Write at label X the total value of assets not allocated to members on 30 June 2024.

The use of reserve accounts is strictly limited for SMSFs. For more information see, SMSF Regulator's Bulletin 2018/1 The use of reserves by self-managed superannuation funds.

Y Other liabilities

Did the SMSF have other liabilities?

• No – Leave label Y blank. Go to label Z.
• Yes – Read on.

Write at label Y the total value (on 30 June 2024) of liabilities that you could not include in labels:

• V Borrowings
• W Total member closing account balances
• X Reserve accounts.

Z Total liabilities

Work out the SMSF's total liabilities at 30 June 2024. Add up all the liabilities at labels V to Y. Write the total at label Z.

If the total of labels V to Y is negative, write 0 (zero) at label Z.

If the SMSF was wound up during 2023–24 (that is, it has no liabilities), write 0 (zero) at label Z.

Label Z Total liabilities must equal label U Total Australian and overseas assets in item 15d.

Continue to: Section I: Taxation of financial arrangements – item 17

Return to: Instructions to complete your SMSF annual return 2024