New SMSF Rules – Impact on Property Investments

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08 / Apr / 2013


Legislation to amend the superannuation laws was introduced to Federal Parliament in February and if passed will amend the rules for buying and selling of certain assets between SMSF’s and related parties from 1 July, 2013.  Related parties can be members of the fund or their relatives.

Basically the provision prohibits the trustee of an SMSF from buying from or selling to a related party except under very specific circumstances.

Listed securities can be bought and sold, but yet to be release regulations will apply.  It is uncertain whether this will prohibit sale off-market.

“Business real property” can be bought and sold, but must be valued by a qualified independent valuer, which will increase the transaction cost.

The penalties will be high, with trustees to be fined $10,200 for each individual breach, so it is important that SMSF trustees are familiar with the legislation.

Check out the recent Smart Company article for more details.  If you feel any of this may apply to your fund feel free to contact us for specific advice.

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