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Saturday, 23 October 2021

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Property double stamp duty

The Australian Financial Review of 25 February 2013 reports that many trustees buying property in their SMSF are following incorrect procedures that result in paying double stamp duty.

SMSF trustees are buying at auction in their own name but later find the property title is meant to be held by the trustee of the super fund.

Where this happens they face paying double stamp duty. Thanks to clampdowns by state government revenue offices, both entities – the individual and the fund – need to pay stamp duty on the purchase. The total tax bill depends on which state or territory the property is located, but it could be as much as $50,000 extra stamp duty. Buyers are making offers on properties on which their banks refuse to lend for SMSFs, such as commercial property or service stations.


 

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