An SMSF Trustee can acquire listed securities, such as ASX-listed shares and commercial properties/business real properties from a related party at its market value. This is known as off-market transfer. The market value requirement means the SMSF must pay the related party a value for the asset that would be paid in an arm’s length and at market price. Obtaining a current listed share value is extremely easy since share prices are listed daily on Stock Exchanges. In terms of the valuation of commercial properties, you might need to engage a qualified independent valuer. It’s also important to remember that off-market transfer might trigger capital gain tax in your personal capacity when selling the assets to the SMSF.
If an individual makes a super contribution to an SMSF in the form of an asset other than money, this type of contribution is known as an in-specie contribution. One of the key attractions to an SMSF is the ability to move certain assets from outside the superannuation environment into the Fund. Generally, an SMSF Trustee is not allowed to acquire assets from a related party but there are some important exceptions. The two key exceptions include:
Listed securities or commercial properties can be transferred into the SMSF by way of an in-specie contribution or off-market transfer. However, please be mindful of the annual contribution limits when making an in-specie contribution. For more infornmation on the contribution caps, please refer to here.