NEWS – Can you transfer property “in-specie” from one SMSF to another?

NEWS – Can you transfer property “in-specie” from one SMSF to another?

NEWS – Can you transfer property “in-specie” from one SMSF to another?

If a self-managed super fund (SMSF) is short on cash to roll over a member’s benefits, it is possible for a member to transfer a property ‘in specie’ to another SMSF? (Query posted at Advisor

In NSW, transfers of property from one SMSF to another SMSF can be transferred with only concessional stamp duty of $500 payable if the relevant requirements of the Duties Act are met.

This method of transfer may be suitable where the SMSF does not have enough liquid assets to roll out a member’s benefits by way of cash only.

A combination of a transfer of property to the relevant member’s new SMSF with the remainder of the rollover to occur by cash is also possible.  This would mean that the SMSF would not have to liquidate its assets in order to have sufficient cash available for a rollover.

Some important things to consider prior to affecting a transfer include:

  • Ensuring the relevant trust deed of the SMSF contains powers to transfer property owned by the SMSF ‘in specie’
  • Whether the property meets the definition of “business real property” if the transfer is occurring from a SMSF who is considered a related party to the receiving SMSF
  • The current market value of the property to be transferred cannot exceed the total value of the member’s benefits to be transferred out of the SMSF

Our contacts can assist with the preparation of concessional stamp duty documents as well as attending to the lodgement of documents for stamping with the Duties Office and registration with the Titles Office.

Prior to proceeding with a transfer it is important that a member seek advice from their financial adviser and accountant as to whether such a transfer would be suitable.
Similar concessions or exemptions are available in other states, for example, Vic and WA.

Want to know the options and how property works in SMSF? See our FREE slides SMSFProperty Overview

Call for free education, or to speak to an advisor about your specific situation. SuperBenefit works with SMSF trustees to CONNECT them with the advisors they need. A call is FREE.

If you have any questions, why not give us a call – it’s FREE! No obligation.

0407 361 596, Paul


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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