New South Wales Stamp Duty Concessions on Transfer of Property from a Member to a Self-Managed Superannuation Fund

New South Wales Stamp Duty Concessions on Transfer of Property from a Member to a Self-Managed Superannuation Fund

In certain circumstances you can now transfer NSW real property to your super fund with only nominal stamp duty.

Section 62A of the Duties Act 1997 stipulates a concessional rate of duty when real estate is transferred from a Member to their Self-Managed Superannuation Fund (SMSF) under certain circumstances.

Where the transfer is under a limited recourse borrowing arrangement (i.e. a Warrant Trust), duty will be charged at a maximum of $500 where:

  • The individual transferring the property is the sole Member of the SMSF; OR
  • The beneficial interest in the warrant trust is held in a “segregated account” for the sole benefit of the transferring individual.

Where the property is transferred into the SMSF unfunded (e.g. as a non-concessional contribution), duty will be charged at a maximum of $50 where:

  • The individual transferring the property is the sole Member of the SMSF; OR
  • The property is held in a segregated account for the sole benefit of the transferring individual.

The type of property and the market value of property that can be transferred to the SMSF is restricted by the Superannuation Industry (Supervision) Act 1993. For example, as the property is being acquired from a Member of the SMSF, it must be “business real property” and the price paid by the SMSF must be market value. The market value should also fall within the non-concessional contributions cap to avoid penalty tax being payable.

We can assist you in transferring property under these concessions. We provide a full range of services, including:

  • Providing superannuation advice as to whether certain property can be transferred to the SMSF without breaching the member-acquisition rules and non-concessional contributions cap;
  • Establishing an SMSF for you;
  • Reviewing your existing SMSF Deed to ensure the SMSF can acquire the property (including establishing a segregated member account), and amending your Deed if necessary;
  • Providing the documents to establish a limited recourse borrowing arrangement;
  • Providing the documents to establish the segregated account where the SMSF has more than one member; and
  • Carrying out the conveyance from the Member to the SMSF.

Contact us on 1300 654 590 or email us to discuss your options.

 

The information contained in this post is current at the date of editing – 24 November 2023.

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