Can I still transfer shares I own to my SMSF?


YES you can if they are listed shares, unlisted cause a lot more issues.

In an unexpected move back on 30 May 2013 the Government decided not to proceed with the proposed banning of off-market transfers of listed securities (shares, listed hybrids etc) by  people to their self managed super fund (SMSF). This means that shares can still be transferred between SMSFs and related parties off-market as of November 2017.

The Government had previously announced that off-market transfers of listed securities between SMSFs and related parties would be banned from 1 July 2013. It was announced as a measure to prevent people abusing the system even though there was little proof of any abuse being widespread. Hopefully, the fact that they went so close to legislating such measures will serve as a warning to those who tinker at the margins of abusing the facility. I would expect the ATO to use the new penalty regime to target a few clear cases of abuse to ensure that the message gets through loud and clear! 

The Government had also previously announced that from 1 July 2013, a qualified independent valuation would be required in situations where an SMSF was acquiring an unlisted asset from a related party, or selling an unlisted asset to a related party. So selling properties, units in unit trusts or private company shares to or from the fund would have been made very expensive.

So the following is the “current position” in November 2017

The proposed ban on SMSF off-market transfers of listed securities between the fund and a related party, which was due to take effect from 1 July 2013, did not go ahead.

The proposed new additional requirement to obtain an independent valuation from a suitably qualified source when transacting with related parties and unlisted assets (e.g. certain types of property), which was due to come into effect from 1 July 2013, did not proceed.

SMSF Trustees can expect greater scrutiny of off market transactions by fund auditors as they meet their “breech” reporting obligations and take care not to attract the attention of the ATO in the first years of the new Auditor’s registration regime.

If you have concerns or want us to help you process transfers of shares to your fund just use the “schedule a meeting” option on the top left of this page or call our Castle Hill or Windsor Offices in the Norwest of Sydney for an appointment on 02 98941844.

Please consider passing on this article to family or friends. Pay it forward!

Liam Shorte B.Bus SSA™ AFP

Financial Planner & SMSF Specialist Advisor™

Top 50 Logo 12%Verante Financial Planning

Tel: 02 98941844, Mobile: 0413 936 299

PO Box 6002 BHBC, Baulkham Hills NSW 2153

5/15 Terminus St. Castle Hill NSW 2154

Corporate Authorised Representative of Magnitude Group Pty Ltd ABN 54 086 266 202, AFSL 221557

This information has been prepared without taking account of your objectives, financial situation or needs. Because of this you should, before acting on this information, consider its appropriateness, having regard to your objectives, financial situation and needs. This website provides an overview or summary only and it should not be considered a comprehensive statement on any matter or relied upon as such.

 

The SMSF Coach

 

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2 Comments

  1. Mark

     /  August 9, 2013

    Thanks Liam. I would like to know the allowed time frame for transferring personal shares to my SMSF…can I look back for a week or month to see the lowest share price and then select that date? Cheers, Mark

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    Reply
    • Hi Mark

      It was because people were doing this and trying to find the “best” date to choose as the transfer date that the government were looking to close down this facility completely. So while the facility is still open and people are “choosing” the best outcome at the moment, you can expect that the ATO will revisit this issue and I expect guidelines later this year that will set specific limits to reduce this anomaly. You need to be sure that whatever you currently do will satisfy your auditor so I would check with them and urge you to stick to a recent date rather than risk a contravention report or draw the ire of the ATO.

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      Reply

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