Proposed new rules for SMSF asset transfers

After some delay, new draft laws relating to the buying and selling of assets between a Self Managed Super Fund (SMSF) and a related party have been recently released. Under the new rules every acquisition of business real property by an SMSF will need to be supported by a valuation from a qualified independent valuer (regardless of the market value of the property). It appears that an appraisal by a qualified, independent real estate agent will not be sufficient. This will increase the cost of such transactions for SMSF’s, and potentially put time pressures on time-critical transfers.
Off-market share transfers between a SMSF and a related party are to be disallowed; listed securities will need to be sold on and purchased through the market.
The new rules are to come into operation from 1st July 2013. It may be worthwhile making property or share transfers prior to the commencement date of the new rules. Various bodies have made submissions on the proposed rules.

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