Self-managed superannuation fund (SMSF) trustees and their
advisers should be aware that there is a new duty exemption in
Queensland for property transfers from a custodian (bare trustee)
to the SMSF trustee. While the amendment is recent, it applies
retrospectively from 26 October 2011.
Under the new exemption, a transfer from the custodian to the
SMSF trustee is exempt from duty if the property is held on trust
in compliance with section 67A(1)(b) of the Superannuation
Industry (Supervision) Act 1993 (Cth). The exemption is not
available if the transfer is part of an arrangement where the
property ceases to be held as fund property or there is a change in
the interest of the fund members.
This reinforces that:
it is crucial for SMSF trustees to get their documents right
from the very outset and ensure they comply with section 67A(1)(b);
SMSF trustees should ensure the documents are kept in a safe
place as they will need to produce these documents to the
Commissioner when they have repaid the loan and are transferring
the property from the custodian.
Given the ATO's view that once the borrowing is paid out,
the custodian must transfer the property from the custodian to the
SMSF trustee, this new exemption provides some comfort for SMSF
trustees and their advisers. Previously, trustees had to make a
detailed submission to the Office of State Revenue to obtain a
discretionary exemption and otherwise were liable for full transfer
Winner – EOWA Employer of Choice for Women Citation 2009,
2010, 2011 and 2012
Winner – ALB Gold Employer of Choice 2011 and 2012
Finalist – ALB Australasian Law Awards 2008, 2010, 2011 and
2012 (Best Brisbane Firm)
Winner – BRW Client Choice Awards 2009 and 2010 - Best
Australian Law Firm (revenue less than $50m)
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
In the years following the global financial crisis of 2008 many Australian investors lost their life savings as financial products failed and the Australian Stock Exchange shed over 3,000 points.
Some comments from our readers… “The articles are extremely timely and highly applicable” “I often find critical information not available elsewhere” “As in-house counsel, Mondaq’s service is of great value”
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).