01/03/2013

There are various events in the life of an SMSF where it is important to know that concessional stamp duty is available and how to get it.  Here are a few you should be aware of…  

Change of Trustee
When the Fund has a change in trustee you will need to transfer the legal ownership in the property from the retiring trustee to the new trustee.  This will usually require preparation of a Deed, signed by both the old trustee and new trustee.  This Deed must be lodged with the Transfer document to apply for the concessional rate of duty.

Business Real Property transfer to SMSF
When members own property in their personal names they may be eligible for stamp duty concessions if the Fund is going to acquire the property.  

In NSW duties concessions are available for 100% purchase, 100% contribution or part purchase/part contribution and even allows for borrowed money to be used with a Limited Recourse Borrowing Arrangement (‘LRBA’).

In VIC the duties concessions are available when a member makes a 100% contribution of the property (no payment can be made), and WA duties concessions are available for purchase with no borrowing allowed.

LRBA - Holding Trust Deed
The Holding Trust Deed must be lodged and have stamp duty paid (promptly after settlement) unless the property is located in QLD.  If the relevant documentation (usually includes bank statements, loan documents, proof of duty payable on contract etc) is not lodged to show eligibility for the concession then it may be charged stamp duty as a normal deed.  In NSW this is ten times as much as the concessional rate.
 
LRBA – Change in Holding Trustee
This might occur, say, if a bank used an internal holding trustee and you wish to refinance or if you’ve realised that it makes sense to change from individual trustees to a corporate holding trustee.  Provided there is no change in the beneficial ownership (still being held for the Fund on behalf of the members) there are usually concessions available for the transfer to another holding trustee.
 
LRBA – Unwinding and Transfer back to Fund Trustee
Only nominal duty is payable on the transfer from the holding trustee back to the super fund trustee once the loan is repaid. It is important to safely store the stamped holding trust deed, evidence of stamp duty paid for the purchase, bank statements showing all the money for the purchase was from the Fund Trustee (this includes loaned moneys), and statutory declarations for some States.  Without all of the relevant evidence (for your specific state or territory) you will find it difficult to apply for the concessional stamp duty on the transfer once the loan is repaid.

Warning
Each state and territory has varying requirements in relation to the required documentation so check with the relevant duties and titles office in the state where the property is located or contact our team to see if we can assist you with specialised document packages.