Emily is under the age of 65 and owns a commercial property with her brother worth $580,000. After much discussion and personal capital gains tax consideration Emily and her brother decide they would like to hold the property in super. As they are both under 65 they can contribute up to their non-concessional contribution cap with the option to bring forward the next 2 years using the “bring forward rule”.

After engaging a lawyer and their advisor Emily and her brother contribute their property in-specie to super by preparing transfer documents and applying for the stamp duty exemption. As Emily and her brother own the property 50/50 they will be contributing half of the property each to super making their non-concessional contribution $290,000 per member. This has not exceeded their cap and as the beneficial owners of the property have not changed they receive a full exemption from stamp duty (subject to Office of State Revenue exemptions which may be available, to be assessed on a state by state basis).

Emily has therefore been able to top up her fund before turning 65 and as she is in pension phase will not be taxed on any capital gain when the property is sold or the income from rent received.

This is general illustration only, and the results will differ depending on the investment returns achieved which cannot be guaranteed.

This information has been prepared without taking into account your objectives, financial situation or needs. Because of this, you should, before acting on this information, consider its appropriateness, having regard to your objectives, financial situation or needs.