SMSF Gearing Unwinding


Once a super fund’s limited recourse loan is repaid the fund may wish to unwind the arrangement.

Effective 24 September 2007 the fund’s interest in the holding (bare) trust does not become an in house asset merely because the loan has been repaid. Therefore as the loan comes to an end there are three choices for the super fund to consider:

1.    the super fund leaves the property in the holding trust,

2.    the holding trustee sells the property to a third party at the direction of the super fund,

3.    the holding trust is wound up and the property is transferred to the super fund trustee.

Our documents package includes the preparation of the following required for the unwinding of the holding trust arrangement:

  • Letter of advice on how to complete, execute and process all documents
  • Transfer document
  • Discharge of Mortgage (for related party loands)
  • Notice of Sale or relevant document required in your state or territory
  • Resolutions of the SMSF Trustee
  • Formal direction by the SMSF Trustee to the Holding Trustee requiring the Holding Trustee to sign the Transfer
  • Resolutions of the Holding Trustee
  • Covering letter to the duties office for concessional stamping of the Transfer

Implementation Service

Our implementation service includes lodgement of all relevant documents with both the duties and titles office, as well as responding to any standard requisitions raised by either office. Please contact us for further details.

Documents will be available on your My Account page within 3 business days unless otherwise advised.