Clarity on SMSF duties and LRBAs
After several years of uncertainty the Queensland Duties Office has at last offered clarity on whether it will charge duties on the transfer of an asset from a holding trust to an SMSF trustee.
Under Limited Recourse Borrowing Arrangements (LRBAs) an asset is required to be transferred to the fund once all debt is repaid. The Duties Office has now added a new section to the Act to stipulate that no transfer duty will be levied when a property is being transferred from a custodian to a trustee, or vice versa, if the super fund in question continues its ownership of the property and the transfer does not change the members’ interest in the asset.
The change was made on 12 June 2013 but is backdated for effectiveness to 26 October 2011. In order to apply the new section the SMSF must show that it has elected to be a regulated fund and that the transaction is compliant with the SIS Act.
The Money Edge | Bundaberg