In-house asset rules prohibit DIY Super Funds holding in-house assets in excess of 5% of total fund assets based on market value. The purpose is to separate DIY Super Funds Investments from related parties. The intention is to keep DIY Super Funds assets, secure to pay retirement benefits to members when they reach retirement age.

An "in-house asset" is an asset of the DIY Super Fund that is

Certain investments made prior to 11th August 1999 which breach this rule get 10 years time to get their investments online with this rule.

A related party is:

However, lease of business real property from a DIY Super Fund to a related party would be excluded from the definition of in-house assets.

All transactions with related parties in relation to in-house assets must be on a commercial/arm's length basis. Therefore the earnings on in-house assets must be that which would be received in a commercial market.

However, paying excessive interest or rent (transferring profit to DIY Super Fund) to reduce tax rate to 15% will face penalties. This income may be taxed @ of 47% or may be treated as further loan.