Transfer of shares to super

[slydog]

greetings all
having trouble finding a definitive answer to a question i have,
which is if i have a share portfolio(passive investment) can i transfer that to my complying super fund and will it attract CGT, as best as i can tell it is not a CGT event as ownership has not changed hands
so can i transfer my shares to my super?
if yes then how is it treated for tax?

thanks in advance

 

[Stinger]

Sly,

This will attract CGT as the ownership has changed hands. Your super fund is a seperate entity to yourself therefore there will be a deemed disposal by yourself and a deemed acquisition by your superfund.

Therefore any gains or losses will be crystalised. It does not matter that you are a member of the fund as you are not absolutely entitled to the assets. I wont get into the technicals but if you have a read of TR 2004/D25 on the ATO website it may clear things up.

http://law.ato.gov.au/atolaw/view.h.../00001&recStart=1&recnum=2&tot=7&pn=ALL:::ALL

However i would advise to see your own accountant as i have only briefly looked into this and there may be certain exceptions

 

[Duckman#72]

greetings all
having trouble finding a definitive answer to a question i have,
which is if i have a share portfolio(passive investment) can i transfer that to my complying super fund and will it attract CGT, as best as i can tell it is not a CGT event as ownership has not changed hands
so can i transfer my shares to my super?
if yes then how is it treated for tax?

thanks in advance

Hello Slydog.

If the share portfolio is currently in your own personal name then you cannot transfer them into your superannuation fund without a "disposal" of shares occuring. The superanuation fund will be seen to be picking them up at market value and you will be seen as disposing of them at market value. CGT legislation will apply.

In essence what you are doing is the same as selling 1000 shares in ABC Ltd in your own name and purchasing 1000 ABC Ltd in the name of your superannuation fund.

Even though you don't see it the same way - the shares are in different names.

Hope that helps

Duckman

 

[Prospector]

Yes, we did exactly what you want to do and triggered a CG with our next Tax return. Personal shares are in your name, your super fund is usually a PTY LTD even though you and others are the trustees.

 

[slydog]

thanks for the replies everyone, that saved me a lot of stuffing around