New South Wales Consolidated Acts

DUTIES ACT 1997 - SECT 61

61 Transfers of property in connection with persons changing superannuation funds

(1) This section applies to a relevant transfer that occurs in connection with a person--

(a) ceasing to be a member of, or otherwise ceasing to be entitled to benefits in respect of, a superannuation fund that is a complying superannuation fund or was a complying superannuation fund within the period of 12 months before the transfer was made, and

(b) being or becoming a member of, or otherwise being or becoming entitled to benefits in respect of, another superannuation fund that is also a complying superannuation fund or will, in the opinion of the trustees of both funds concerned, be a complying superannuation fund within 12 months after the transfer is made.

(1A) For the purposes of this section, each of the following is a
"relevant transfer" --

(a) a transfer of, or an agreement to transfer, dutiable property from a trustee of a superannuation fund, or a custodian of the trustee, to the trustee of another superannuation fund, or to a custodian of the trustee of another superannuation fund,

(b) a transfer of, or an agreement to transfer, dutiable property from a trustee of a superannuation fund to a custodian of the trustee, or from a custodian of the trustee of a superannuation fund to the trustee,

(c) a transfer of, or an agreement to transfer, marketable securities from a trustee of a pooled superannuation trust, made in exchange for a redemption of units in the trust, to the trustee of a superannuation fund, or a custodian of the trustee of a superannuation fund,

(c1) a transfer of, or an agreement to transfer, marketable securities from the trustee of a superannuation fund, or a custodian of the trustee of a superannuation fund, made in exchange for the issue of units in a pooled superannuation trust, to a trustee of the pooled superannuation trust,

(d) a transfer of, or an agreement to transfer, marketable securities from a life company or custodian for a life company to the trustee of a superannuation fund or a custodian of the trustee of a superannuation fund if the transfer is made in consideration of the surrender or termination, by the trustee of the superannuation fund of which the person has ceased to be a member, of a policy of life insurance issued by the life company,

(e) a transfer of, or an agreement to transfer, marketable securities from the trustee of a superannuation fund or a custodian of the trustee of a superannuation fund to a life company or custodian for a life company if the transfer is made in consideration of the issue, by the life company, of a policy of life insurance to the trustee of the superannuation fund of which the person has become a member.

(1B) This section does not apply to a relevant transfer if--

(a) the dutiable property transferred, or agreed to be transferred, has a value that is more than the value of the benefits to which the person is entitled--

(i) at the time of the transfer or agreement to transfer, and

(ii) in respect of the superannuation fund for which the person ceases to be entitled to benefits, or

(b) consideration is given for dutiable property transferred or agreed to be transferred except as provided in subsection (1A)(d) and (e).

(1C) For subsection (1B)(b), an undertaking by the trustee of a superannuation fund to provide rights and benefits to a person in accordance with the rules of the superannuation fund is not consideration.

(2) The duty chargeable on a relevant transfer to which this section applies is ad valorem duty in accordance with this Chapter or $750, whichever is the lesser.

(2A) This section applies despite section 18 (2) and (3).

(3) An application for an assessment of duty in accordance with this section is to be accompanied by the following--

(a) a brief explanation of the background to the transfer and the entitlements to be extinguished and created,

(b) copies of the governing rules of the superannuation funds concerned,

(c) a statement of the property to be transferred,

(d) a copy of each instrument relating to the transfer,

(e) a declaration, in the approved form, from a trustee (or a director of a corporate trustee) of each of the superannuation funds concerned stating that, in the opinion of the trustee (or director), the fund the person will become a member of, or otherwise become entitled to benefits in respect of, will be a complying superannuation fund within 12 months after the transfer occurs.

(4) The Chief Commissioner may require further information.

(5) In this section,
"complying superannuation fund" includes a complying approved deposit fund and an eligible rollover fund.