Amendments made last month to the NSW Duties Act could cause material headaches to super funds holding real estate in NSW.
NSW Duties Act
Can an SMSF be liable for foreign purchaser surcharge duty?
John and Mary, a married couple, are members and individual trustees of their SMSF and their benefits in the fund represent 10% (John) and 90% (Mary) of the total value of the fund respectively. John is a foreign person for the purposes of the surcharge duty in NSW. Is the SMSF subject to surcharge duty in NSW?
Further developments on double stamp duty provisions
Last year in September we wrote about changes to section 18 of the NSW Duties Act which appeared to provide more flexibility to SMSFs borrowing to buy investment property and entering into Limited Recourse Borrowing Arrangements.
Changes to requirements on trust property transfers
Fred and Wilma are the trustees of the Flintstone Unit Trust which own a commercial premises in NSW and supplies building materials to its clients. Fred and Wilma decide to retire and wish to sell their business to a third party.