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Transfer by direction to superannuation custodian exemption (s. 130A) toolkit

This toolkit brings together everything you need to know about self assessing transfers by direction to the custodian of a superannuation fund.

Section 130A of the Duties Act 2001 exempts the transfer by direction of dutiable property from a vendor to the custodian of a bare trust that holds the property on trust for the trustee of an eligible superannuation entity.

An eligible superannuation entity is one of the following:

  • a public superannuation entity (e.g. a pooled superannuation trust)
  • a complying superannuation fund (e.g. a self-managed superannuation fund) if the fund is regulated by the Australian Prudential Regulation Authority (APRA).

The exemption applies to the transfer if it is made under an agreement for the transfer of the property from the vendor to the trustee as purchaser, the property is fund property, and transfer duty imposed on the agreement has been paid.

Not all complying superannuation funds are regulated by APRA. Other regulators include the Australian Taxation Office. Under the Superannuation Industry (Supervision) Act 1993 (Cwlth), a complying superannuation fund that is not regulated by APRA may borrow money to acquire certain property if a custodian trust is to hold the acquired property until the loan is repaid.

In these instances, if an eligible superannuation fund is a complying superannuation fund (e.g. a self-managed superannuation fund) that is not regulated by APRA, then an exemption on a transfer under this section will only apply if:

  • the transfer is made under an agreement to purchase dutiable property that is an acquirable asset between the vendor and the trustee of the eligible superannuation entity, and duty has been paid on the agreement
  • the trustee of the superannuation entity borrows money for the purchase from a third party lender
  • the trustee uses the borrowed funds to purchase the asset
  • the asset is held in a separate (bare) trust by the custodian.

If you believe this exemption will apply to a transaction you are dealing with, as a registered self assessor you must assess and lodge it through OSR Online.

Assessing a section 130A exemption

Use the section 130A interactive help to determine if you should apply the exemption to a transaction.

Here are some tips to help you assess this type of transaction in OSR Online.

How to lodge online

You must complete all mandatory data fields under each tab in OSR Online. Mandatory fields are marked with a red asterisk. There are some specific data requirements.

  • Answer Yes to the question: Is the consideration for this transaction less than the unencumbered value of property included in this transaction?
  • Enter the unencumbered value of 100% interest in property if known; if unknown, enter $0.00 (nil).
  • Select Yes to the question: Is an exemption being claimed?
  • Select s.130A exemption for transfer by direction to custodian from the Exemption type drop-down list.

Non-Australian entity

When a transaction includes real property, each transferor and transferee must declare whether they are a non-Australian entity.

A non-Australian transferor or transferee must complete an identity details annexure.

For transferors, an email is automatically generated through OSR Online when the transaction is lodged, asking the transferor to complete an online identity details annexure. Contact us for help if you cannot obtain the transferor's email address.

Transferees must complete an identity details annexure and you must enter these details in OSR Online.

Records you need to keep

For this type of transaction, you must keep:

  • copies of the transaction documents (e.g. the agreement and transfer)
  • a copy of the trust deed for the eligible superannuation entity
  • a copy of the deed establishing the custodian (bare) trust
  • a completed dutiable transaction statement (Form D2.2)
  • an identity details annexure for each non-Australian transferee, if the transaction involves real property.

Also consider...

Contact

Office of State Revenue
For transfer duty self assessment queries:

For queries on payroll tax, land tax and royalties:

  • call 1300 300 734 (Australia) or +61 7 3179 2500 (overseas)
  • send an email using our online enquiry form.