SMSFs and Related Party Transfers

Following the pleasing change of heart by the Government in June 2013, SMSFs members are still allowed to transfer assets from related parties into their fund.  Our attached fact sheet explains why this might be of benefit and what assets can be transferred.

Related party transfers allow you to shift investments you own into your SMSF.  The benefit is that those investments will then be held in the low-tax superannuation environment, with any earnings or capital gains from the investments taxed at 15% in accumulation phase and tax-free in pension phase.  

However, once these investments are in your SMSF they will be subject to the superannuation laws which restricts how they can be used in return for the significant tax advantages offered.

If you would like advice and help in this area, please contact Michael Rees-Evans, Partner – Wealth Consulting, on 02 9299 7044 or michael.rees-evans@lockwood.com.au

Comments are closed.