North Sydney Commercial Lawyers

Transfers of property into super and GSTPrint This Post

Transfers of property into super and GST

Where you are selling a commercial investment property to your self-managed super fund, you may be aware that s62A of the Duties Act provides that concessional stamp duty of $50 is payable on the transfer into the fund.

However, where two people jointly own property and receive income from it, they are considered a tax law partnership carrying on an enterprise for GST purposes and accordingly they make a taxable supply in such circumstances. This means that GST is payable on the transfer.

Make sure your new tax law partnership is registered when it makes the sale. This way, it can take the advantage of the going concern concession and avoid unwanted GST consequences.