05/07/2018

Administration of SMSFs may be affected by the new national electronic conveyancing rules.

In NSW, the new rules take effect from 1 July 2018 and require all standalone transfers, standalone mortgages, standalone discharge of mortgages and all refinances to be lodged electronically via an online platform called PEXA (Property Exchange Australia).

Quite naturally, people think the new conveyancing rules only relate to conventional conveyancing transactions with little impact on SMSF-related transfers and mortgages. Perhaps this is the reason that very little information is available to the public on the impact of new conveyancing rules on SMSF administration.

Be aware that the new rules will affect most SMSF-related transfers and loans as they are typically ‘standalone’ and are not a combination of multiple dealings.      

SMSF matters that will be impacted by the new rules include (but are not limited to):

-    change of trustee, where the SMSF owns a property;
-    rolling over benefits between superannuation funds, where a transfer of property is involved;
-    buying a property with a limited recourse borrowing arrangement;
-    unwinding a limited recourse borrowing arrangement after full repayment of the mortgage; and
-    secured loans to an unrelated third party.   

Other than NSW, most State and Territory governments have announced the transition to electronic conveyancing. Although their timelines may differ, each jurisdiction’s conveyancing system is undergoing changes in light of the ultimate goal of achieving a nationally consistent electronic conveyancing system.    

Accordingly, if you are planning to enter into any of the above transactions in relation to your SMSF, it is more than ever important that you talk to us about getting legal advice from our professionals who focus on this area and who are also capable of completing your transactions electronically. 

For further information, please contact Townsends Business & Corporate Lawyers on (02) 8296 6222 or info@townsendslaw.com.au to see how we can assist.