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Alerts

Last week the Federal Government decided not to proceed with a proposal to ban off-market transfers of listed securities between a SMSF and a related party of the fund (e.g. the SMSF trustee) from 1 July 2013.

This means that the current practice whereby shares and other listed securities can be transferred between a SMSF and a related party without a broker (i.e. by only filling in a standard form) will continue after 1 July 2013 (the original proposal was that from 1 July 2013, such transfers would only have been possible if done by a broker and SMSFs may have even been forced to sell the shares on the open market).

The implications of not banning the off-market transfers of listed securities is:

  • The current rules that apply to SMSF off-market transfers and related party transactions will continue post 30 June 2013 (because 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, will not go ahead); and
  • The proposed new requirement to obtain a qualified independent valuation when transacting with related parties and unlisted assets (e.g. certain types of property), which was due to take effect from 1 July 2013, will not go ahead.

Next Steps

Should you wish to know more, please contact your Pilot representative on (07) 3023 1300.