The 10 year transitional period for the limit on ‘in-house assets’ for self-managed superannuation funds (SMSF) ends on 30 June 2009. SMSF’s that have investments, loans or leases that were part of the fund prior to 12 August 1999 may find that these investments are exempt from the in-house asset rules. In addition, the transitional in-house asset rules may apply, excluding certain related party investments made after 11 August 1999 and up until 30 June 2009 from being included in the measurement of the fund’s in-house assets. Transitional rules come to an end on 30 June 2009. It is important that trustees of SMSFs begin to examine their transitional inhouse asset arrangements now to ensure that they will not become in-house assets on 1 July 2009. Unless trustees act, they may find themselves in a position where they are in breach of the in-house assets test.