SMSF: Stamp duty on transfers of land

Transcription

1 TB 93 SMSF: Stamp duty on transfers of land Issued on 1 October Stamp duty on transfers of land to an SMSF and between superannuation funds Stamp duty imposed by State and Territory governments should be considered when transferring land to an SMSF or between superannuation funds. Concessions or exemptions from duty may be available depending on the State or Territory in which the land is situated. The provisions of the duties legislation of each State or Territory differ, however where concessions or exemptions are available they generally require: For transfers to a fund - the transferor to continue to be the beneficial owner of the land (this relates to business real property as it is the only land which an SMSF may directly acquire from a member) For transfers between funds the transfer to occur in be a member of the transferee fund and becoming a member of the transferor fund The following tables set out the details of the stamp duty offices and relevant provisions of the relevant legislation in each State and Territory. This is up to date as at 29 March NSW Transfer to a SMSF Transfer between super funds Duty payable $50 subject to conditions being met Ad valorem duty or $500, whichever is the lesser 62A Section 61 Nominal duty is charged on a transfer of dutiable property from a person to a trustee of an SMSF where the: transferor is the only member of the super fund or the property is to be held by the trustee solely for the benefit of the transferor (ie property or proceeds of sale of property cannot be pooled with property held for another member and no other member can obtain an interest in the property or proceeds of sale); and property is to be used solely for the purpose of providing a retirement benefit to the transferor. dutiable property that occurs in be a member of a super fund and becoming a member of another super fund.

2 application form copy of the SMSF trust deed evidence that it is a complying SMSF as at the date of the agreement/transfer copy of minutes of meetings of the SMSF stating the intention to have the property transferred to it and confirming that the property was owned beneficially by the transferor member copy of the SMSF trust deed or a variation to it, showing a non revocable clause that the property is segregated for the transferor member's benefit only (follows wording in section 62A(2)) Application form and documents are Refer to section 61(3). Legislation Duties Act of State Revenue VIC Transfer to a super fund Transfer between super funds Duty payable No duty subject to conditions being met No duty Section 41 Section 40 No duty is charged in respect of the transfer of dutiable property made without monetary consideration to a trustee of a super fund, where there is no change in beneficial ownership. A transfer of property to a trustee of a super fund by a beneficiary of the fund does not, for the purposes of this section, effect a change in the beneficial ownership of the property. No duty is charged in respect of a transfer of dutiable property from one super fund to another if the transfer occurs in connection with the person ceasing to be a member of the transferor fund and the person s becoming a member of the transferee fund. Documents are required refer to Evidentiary Requirements for Dutiable and Exempt Transactions Legislation Duties Act 2000 (No. 79 of 2000) State Revenue (SRO) QLD Transfer to a super fund Transfer between super funds Duty payable Ad valorem duty applies $20 A transfer of dutiable property is a dutiable transaction. Section 108 Transfer duty of $20 applies to a transfer of dutiable property between super funds to effect a merger (of 2 or more funds) or split (into 2 or more funds). Application form and documents are Application form and documents are Refer to section

3 Legislation Duties Act of State Revenue WA Transfer to a super fund Transfer between super funds Duty payable $20 $20 Sections Section 125 Nominal duty is charged on a transfer of dutiable property by a person to the trustee of a super fund where there is consideration for the transfer; and only the transferor can be a member of the super fund or the property is held in the super fund specifically for the transferor (ie property cannot be pooled with the assets of another member and no other members can obtain an interest in the property); and the property (or if sold, the proceeds) can only be held in the superannuation fund to be provided to the transferor as a retirement benefit. If the fund subsequently fails to satisfy any of the requirements (above) general duty is payable in respect of any dutiable property still held. Nominal duty is charged in respect of a transfer of dutiable property to the trustee of an SMSF that is an employer sponsored fund where there is no consideration for the transfer. Nominal duty is charged on a transfer of dutiable property that occurs in be a member of a super fund and becoming a member of another super fund, for which there is no consideration. Application form is required Superannuation Fund Transactions Application for Nominal Duty. Legislation Duties Act 2008 Also refer to Duties Fact Sheet Superannuation Transactions of State Revenue ACT Transfer to a super fund Transfer between super funds Duty payable Ad valorem duty applies Lesser of ad valorem duty or $200 ($20 minimum applies) Section 62 3

4 dutiable property. dutiable property for no consideration that occurs in connection with a person ceasing to be a member of the transferor fund and becoming a member of the transferee fund. Duty of $20 is charged for transfers between funds established for the benefit of employees of a hospital, school or charity. Refer to section 62. Legislation Duties Act 1999, No. 7 ACT Revenue SA Transfer to a super fund Transfer between super funds Duty payable Ad valorem duty applies Lesser of ad valorem duty or $200 A transfer of property to a person who takes as trustee is deemed to be conveyance whether or not any consideration is given. 71DA Duty is payable on a conveyance of property between super funds, in be a member of one super fund and becoming a member of the other super fund. required Application for Opinion form and documents are Legislation Stamp Duties Act Revenue SA NT Transfer to a super fund Transfer between super funds Duty payable Ad valorem duty applies Ad valorem duty applies (except in certain circumstances regarding the transfer of family farming properties) Legislation A conveyance of dutiable property is a dutiable instrument. required Stamp Duty Act Territory Revenue TAS Transfer to a super fund Transfer between super funds Duty payable Ad valorem duty applies $20 4

5 (except in certain circumstances regarding the transfer of primary production land) dutiable property. Section 45 dutiable property from one complying super fund to another where the transfer occurs in connection with a person s ceasing to be a member of the transferee fund and becoming a member of the transferor fund. Refer to section 45(3). Legislation Duties Act State Revenue Glossary A general description of some of the terms used in the above table follows. The definition of these terms may differ according to the state or territory stamp duty legislation. Ad valorem duty Duty calculated according to the value of the dutiable property. Conveyance Transfer of property. Dutiable property Land situated in the relevant state or territory. This Technical Bulletin has been produced by OnePath s Technical Services and is intended for the use of financial advisers only. It is current as at the date of publication but may be subject to change. This publication has been prepared without taking into account a potential investor's objectives, financial situation or needs. Before making a recommendation based on this publication, consider its appropriateness based on the client s objectives, financial situation and needs. 5