The new indexed contributions levels recently announced by the Australian Taxation Office (ATO) will better facilitate in-specie transfers of commercial property into an SMSF for the 2015 financial year, according to Gadens Lawyers.
The indexation adjustments mean the yearly concessional contributions cap will jump from $25,000 to $30,000 for 2014/15, the $35,000 cap for people aged 59 and over will be applicable for those aged 49 and over, and the annual non-concessional contributions cap will rise from $150,000 to $180,000.
Furthermore, the amended amounts mean the bring-forward amount for non-concessional contributions will be $540,000.
The indexation modifications in effect have increased the amount of allowable contributions for 2014/15 by $100,000 and it is this increase Gadens believe will benefit some SMSF trustees.
“This is good news for owners of commercial property who may be seeking to contribute all or part of their real property holdings (held directly or in a family discretionary trust) into their self-managed superannuation funds as a superannuation contribution,” the law firm said.
“Stamp duty laws in most states and territories provide exemptions from stamp duty for in-specie transfers of property to a self-managed superannuation fund, where the transfer is made as a superannuation contribution.”
While this is a strategy that can be advantageous for trustees, Gadens warned the manner in which the transfers were made was critical.
“The transfers need to be properly structured to enjoy the maximum stamp duty savings whilst at the same time ensuring that excess contribution tax is not inadvertently incurred,” it said.
