Selling property to your own super fund, see us FIRST!

Are you thinking of selling your business commercial premises into your super fund?

The Western Australian Duties Act 2008 can allow for concessions of duty to be charged when moving / selling / transferring a commercial (business real property) premises by its members into their super fund.

Such transactions, when properly structured, and meeting all relevant criteria, may be liable to $20 nominal duty instead of the normal full conveyancing duty.

The duty concessions may also be possible to be accessed if the commercial property is currently held by a discretionary trust, as opposed to the members themselves.  Although involving extra criteria to be met, the transaction can be done in stages, ultimately achieving the property being sold and transferred into the members super fund.

To qualify for nominal duty under the new provisions, membership of the fund has to be restricted to, or the asset transferred to the fund must quarantined for, the members who are selling the asset to the fund.  If involving a discretionary trust, extra requirements and care must be taken in ensuring the beneficiaries of the trust are eligible to receive the property as well.

It is ill advised to try to do this sort of transaction through a normal settlement agent, or to attempt to transfer the property direct from the members to the superannuation fund, as the ad valorem (full) rate of duty will apply, meaning you will pay full conveyancing duty on the transaction.

BNT Legal cannot advise whether or not selling your property into your superannuation fund is a good idea and in line with your fund’s financial and your financial objectives.  That advice needs to come from your financial planner.

Contact BNT legal today for more information or to discuss the process and benefits of structuring the deal correctly and effecting the necessary requirements to meet the duty concessions and give effect to the selling of the property into your superannuation fund today.



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