From 1 July 2012 all related party transactions with SMSFs will have to be conducted on a recognised market and if one does not exist then the parties must obtain a valuation from an independent qualified valuer.

Self-managed superannuation fund members will not be able to transfer shares off market without the use of a broker under new regulations.  All transfers of ASX listed securities to and from SMSFs will have to be conducted on-market.

Where a fund transfers property, art work, collectables and personal use assets, an independent valuation from a qualified valuer will be required.  Funds that are required to transfer art work, collectables and personal use assets by 2015 due to amendments regarding holding these assets in a fund, may be advised to transfer them out prior to 30 June 2012 to avoid added cost in obtaining independent qualified valuations.

The proposal to ban off market transfers is intended to limit the ability to minimise capital gains tax and avoid excess contribution tax by selecting favourable transfer dates.

Clearly, in order for the auditor to sign off appropriate valuations must be evidenced.

Where SMSFs intend to transfer property we advise members to contact our legal and audit area for advice regarding stamp duty implications and audit requirements.

For additional information please contact our office or send an email enquiry through the contact us  tab on our webpage.