Transferring Assets Member to Fund

Contributions to a super fund are usually made by cheque or electronic transfer. However the rules allow assets to be transferred as a contribution. Such transfers are called “in-specie” contributions and are covered in some detail within the superannuation law. Also, please note that these rules apply to all transactions between a member or any related party of the member and the fund. Accordingly, the regulations actually apply to the fund itself and refer to the “acquisition of assets from a member or related party”.

There are some assets that can be transferred and some that cannot. While the list below is not necessarily complete, it covers the most common assets.

YES NO
Commercial Property (must be 100% business use), including farms Residential property
Vacant land being used for 100% for business purposes Vacant land not in use
Shares and other securities, listed on various defined stock exchanges Shares in a private company or an unlisted public company
Managed Funds or Unit Trusts, meeting the definition of being “widely held” Unlisted shares, whether public or private company
Units in a related party ungeared unit trust, provided the in-house asset test is not breached Units in a related party geared unit trust, if the inhouse asset test would be breached
Artworks and collectibles
Mixed use property, part commercial and part residential

There may be other conditions that need to be met before a transfer is allowed, so professional advice should be sought. Members should assume that an asset cannot be transferred or sold to a fund, unless advice is received confirming that the transfer is within the law.

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