Questions & Answers - Off Markets

An SMSF Member (or an associate of a Member including family members by blood or marriage or entities controlled by the Member) cannot transfer an asset they currently own to an SMSF unless the transfer is specifically allowed by legislation. The only assets currently allowed to be transferred to an SMSF from a Member (or an associate of a Member including family members by blood or marriage or entities controlled by the Member) are as follows:

Importantly, whilst an SMSF can purchase Residential Property from a person who is not a Member (or an associate of a Member including family members by blood or marriage or entities controlled by the Member), an SMSF cannot purchase Residential Property from a Member (or an associate of a Member including family members by blood or marriage or entities controlled by the Member) even if the purchase is at market value.

You can transfer ASX Listed Shares held in your personal name to your SMSF by completing an Off Market Transfer Form (see below). For example if you own 500 BHP shares in your personal name and you wish to transfer these shares to your SMSF, you will need to complete an Off Market Transfer Form (OMT) and lodge this form with EBROKING. In the Off Market Transfer Form you will need to list the Purchaser of the Shares as your SMSF. You will not need to specifically state which Member the shares are being allocated to. This is done as part of the annual Checklist Process.

A standard fee of $55 per Off Market Transfer applies with EBROKING. For example if you wish to transfer say BHP, CBA and ANZ from your personal name to your SMSF this will count as 3 Off Market Transfers.

An EBROKING Off Market Transfer Form can be found here.

The tax implications of transferring shares via an Off Market Transfer must be carefully considered prior to undertaking this action and are detailed here.

To transfer Managed Funds (e.g. MLC, AMP, Platinum etc.) from your personal name to the name of the SMSF an Off Market Transfer Form must be completed and lodged with the Fund Manager directly. A generic Off Market Transfer Form can be found here. In the Off Market Transfer Form you will need to list the Purchaser of the Managed Funds as your SMSF. You will not need to specifically state which Member the Managed Funds are being allocated to. This is done as part of the annual Checklist Process detailed here.

To transfer Commercial Property from your personal name to the name of the SMSF you will need to execute a Contract of Sale and will need a solicitor to prepare the required documentation including lodging the transfer documents with the relevant State Revenue Office. You will need to list the Purchaser of the Commercial Property as your SMSF. You will not need to specifically state which Member the Commercial Property is being allocated to. This is done as part of the annual Checklist Process.

You must remember that it may not comply with super regulations to transfer Residential Property from the name of an SMSF Member (or an associate of a Member including family members by blood or marriage or entities controlled by the Member). So you should never contemplate this transfer as it will lead to significant penalties.

Yes. All Asset Transfers from a Member (or an associate of a Member) must be transferred at Market Value. The Market Value must be clearly detailed in the Off Market Transfer Form prepared for the transfer of ASX Listed Securities or Managed Funds or in the event of Commercial Property in the Transfer Documentation. To the extent that the asset is transferred to the SMSF at a value under Market Value the transfer will be "deemed" to be at Market Value.

When you make an Off Market Transfer to an SMSF, it can be treated in one of two ways when it is received by the SMSF. It can be treated as either a Contribution or alternatively as an Asset Purchase by the SMSF. It is totally your choice which option is chosen! Each is discussed below.

In the documentation to action the asset transfer you will need to list the Purchaser of the asset as your SMSF. At the end of the Financial Year we will forward to you a Checklist detailing if you wish the transfer to be treated as a Contribution or an asset sale. If you elect the transfer to be treated as a Contribution you will need to elect which Member will be allocated the contribution and the type of the contribution to be allocated, namely Non Concessional or Concessional. Once this election has been made, the value of the asset (not the asset itself) will be allocated to the Member when preparing the annual compliance documents for the SMSF.

As detailed above in the documentation to effect the asset transfer you will need to list the Purchaser of the asset as your SMSF. At the time of the transfer you can elect that the transfer be treated as a sale and the SMSF pays you the Market Value of the asset being transferred. In this case we will not record the asset transfer as a contribution. Under this scenario the value of the asset (not the asset itself) will be allocated on a proportional basis to each Member based on Members existing ownership of the SMSF at the time of the transfer, when preparing the annual compliance documents for the SMSF.

Stamp Duty may be payable on Managed Funds and Commercial Property Transfers and should be carefully considered prior to transferring these assets to your SMSF. Accordingly you will need to contact the State Revenue Office or your solicitor to discuss the Stamp Duty implications of any transfer where it involves Managed Funds or Commercial Property. There is no stamp duty on share transfers.

Because there is a change in ownership of the asset transferred from you to the SMSF, the asset transferred is deemed to have been sold resulting in possible CGT implications on the transfer. This means: