Deferral of the 1 July proposed ban of off-market transfer in SMSFs


Asset for SMSFs - Deferral of the 1 July proposed ban of off-market transfer in SMSFs

Deferral of off-market transfers

At the recent meeting of the National Tax Liaison Group, Federal Treasury officials confirmed a deferral in the introduction of the proposed ban of off-market transfer in legislation for SMSFs which was to have taken effect from 1st July this year 2012. Currently no legislation exists and may quell the speculation surrounding the proposed changes.

In brief, what was expected is the banning of off-market transfers to SMSFs where a trading market exists.  This would mean that funds wishing to acquire listed securities from members would need to do so by having the member sell them on-market, then the SMSF purchases them on-market instead of merely completing a transfer form as at present (such as with your broker for shares).

Reporting in The Age newspaper in April (see article HERE) and elsewhere –

“The super rules currently limit in-specie contributions to business real property or listed securities such as shares, though you can pay all sorts of assets out as in-specie benefits.

But from July 1, it is proposed that such transfers must be made through an underlying market where one exists. Where a ready market does not exist, acquisitions or disposals of assets between self-managed funds and related parties should be supported by a valuation from a qualified, independent valuer.

An added complication is that draft legislation for this change has not yet been released, says the head of superannuation at the Institute of Chartered Accountants of Australia – Liz Westover. So there are still questions over how it will work, particularly in regard to valuations.”

Hopefully this delay will lead to more consultation which might adjust the regulators views on the desirability of this problematic proposal.


About SuperBenefitnews

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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