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Stamp Duty On Commercial Property Transfers From SMSF to Member NSW

Transfer Commercial Property to SMSF Stamp Duty

Are you a property investor?

Are you thinking about transferring your personally owned property to your Self-Managed Super Fund (SMSF)?

Well, hold on to that thought! Aside from the tax benefits that come with holding property in an SMSF, you can also take advantage of the valuable stamp duty concession provided by Revenue NSW.

As long as certain requirements are met, duty of $500 is payable on a transfer of property from a member or members of an SMSF to the trustee or custodian of the trustee of the SMSF.

This is a significant saving of thousands of dollars considering the average Sydney house price of 1.1 million attracts a duty of $45,990.

When is the Stamp Duty Concession Available?

This stamp duty concession is available if:

  • The transferor is the only member of the super fund and the property will be held for that member’s benefit only. If there is more than one member transferring the property, the property is to be used for the benefit of those members only and in the same proportions as it was held by them before the transfer; and
  • The property is solely used for the purpose of providing a retirement benefit to the member(s).

The situation is slightly more complicated if the transaction involves a transferor transferring property into their SMSF which has two or members. Under the Duties Act 1997 (NSW), the property or sales proceeds of the property cannot be ‘pooled’ with property or funds held by other members of the SMSF nor can other members receive any interest in the property. If this could be a complication in your situation, please contact us and our stamp duty specialists will be able to assist you with satisfying this requirement.

If the SMSF is borrowing funds to acquire the property and the transfer is made to a custodian of the SMSF then an additional duty of $500 is payable on a declaration of trust made by a custodian of the trustee of an SMSF that the property is or is to be held in trust for the trustee of the SMSF.

Revenue NSW require evidentiary documentation before these concessions can be granted.

Do you think you may qualify for these stamp duty concessions? Call V.S. George Lawyers and our solicitors dealing with stamp duty on a regular basis will be pleased to assist you.

For more information, or to make an appointment at our Bexley North office (or at one of our serviced offices in Sydney CBD, North Sydney), please contact:

Phone: (02) 9150 6991

Email: [email protected]