One of the few exceptions where personal assets can be transferred “in-specie” to a Self-Managed Superannuation Fund, is listed shares. These, of course, have to be transferred at market value and therefore a potential barrier to these transfers is often the capital gain that may be generated by the individual as a result of the transfer.
With the significant downturn in markets as a result of the COVID-19 crisis, it may be a good time to consider transfers as there may be minimal capital gains tax effect on the transfer. It may also be possible to treat some or all of the in-specie transfer as a concessional contribution and therefore improve the overall tax effectiveness. Obviously, where transfers are to be treated as contributions, it will be necessary to ensure that you take account of relevant contribution caps applying to the member.
The information provided in this article is general in nature and does not take into account your personal circumstances, needs, objectives or financial situation. This information does not constitute financial or taxation advice. Before acting on any information in this article, you should consider its appropriateness in relation to your personal situation and seek advice from an appropriately qualified and licensed professional.
BOB LOCKE – CHARTERED ACCOUNTANT & SMSF SPECIALIST
Mr Locke has been an accountant and taxation expert for 35 years. His company, Practical Systems Super, provides an all-in-one SMSF solution with a full administrative service, SMSF management software, and independent, licensed advice, tailoring their package to meet the individual needs of trustees and SMSF professionals.
To find out more about Practical Systems Super, visit www.pssuper.com.au, or call 1800 951 855.