Asset In-Specie Transfer Proposed Ban for SMSFs

There is a proposal in the Australian Government’s Stronger Super to ban off-market related party transfers for in-specie assets (non-cash) for owners of self-managed superannuation funds (DIY/SMSFs).

The Government’s proposal, would see SMSFs prohibited from completing in-specie asset transfers, that is transfer non-cash assets such as shares. Instead, DIY funds would have to carry out the transaction through a recognised market such as the Australian Securities Exchange, said Hewison.

Asset In-Specie Transfer Proposed Ban for SMSFs

Non-Cash Assets

“Using shares as an example, this means the investor must sell the asset on the share market, wait four days for trade to settle, transfer the cash into their super fund and re-buy the shares – taking up to a week to complete the transaction,” Hewison Private Wealth chief executive John Hewison said.

The changes were a response to speculation under the Cooper Review that SMSFs were using off-market transactions to minimise capital gains tax by transferring on a date to coincide with a low price for the asset, he added.

Hewison argued that a better solution would have been to tighten the timeframe for the lodgement of transfer documents, rather than add more red tape.

“There is no logical reason to have singled out SMSFs, which are audited, when there is little evidence to suggest SMSFs are using in-specie transfers to avoid capital gains and one could argue that institutional investors would have a far greater impact in this regard,” Hewison said.


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Self-Managed Superannuation Service Providers in Australia. SuperBenefit provides a wholistic SMSF assistance, education and administration service continuum - 1. “assistance” is help of whatsoever nature where our overall SMSF experience and knowledge enables us to provide assistance/help without any legal (or “license”) limitations. 2. “education” involves providing knowledge through teaching, coaching and mentoring about all matters SMSF, including (but not limited to) investment issues such as equities and property, 3. “administration” encompasses all admin aspects of legally required SMSF trustee and member record keeping including (but not limited to) audit and ATO matters. In keeping with our key point that SuperBenefit does not provide Financial Advice, where issues arise from 1, 2, and/or 3 above Indicate a need for a legally authorized provider (such as a Financial Adviser) and the client does not have their own service provider, the client can utilize SuperBenefit’s ‘Connect Assist’ … SuperBenefit, in itself, does not provide Financial Advice, but it does provide the wherewithal for great SMSF service. WE do not provide Financial Advice or any other service that requires a legally authorized provider. However, where such advice or service is required we have our ‘Connect Assist’, a SuperBenefit resource we use to connect clients to a Licensed Advisor or other legally authorised service provider. Call us 0407 361 596, no obligation FREE Connection call to see how we can help you!
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