SMSFs race to beat commercial property tax: CBRE

A self-managed superannuation fund has sold a building leased to ANZ in South Melbourne.

Self-managed super funds are getting the jump on new tax laws due to be introduced next year by selling off commercial properties to avoid being stung with hefty tax bills.

CBRE agents say more than a quarter of the properties they have listed for sale in Melbourne in November and December are owned by super funds, some of which hurrying to offload their commercial assets before changes come into effect on July 1.

Among the new super laws given the green light this week, funds with balances over $1.6 million will be taxed 15% on every dollar over that amount, as well as being slapped with a capital gains tax of up to 15% when they sell their property.

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Super funds have been quick to react, more than seven months ahead of the changes coming into effect.

Among the sales putting the trend in the spotlight, a South Melbourne building leased to ANZ and owned by a superannuation fund sold for $5.7 million at auction.

We have started to list properties under these circumstances for the start of 2017, and anticipate seeing further stock coming onto the market all the way through to June, should the new regulation be passed

CBRE’s Rorey James, Sandro Peluso, Nic Hage and Benson Zhou managed the campaign for the 307 Clarendon St property, which is leased to ANZ for the next two years.

James says the volume of sales of self-managed super fund-owned properties is beginning to balloon.

“Some 28% of properties we have listed in November and December are owned by superannuation funds, with a number of these owners receiving advice that there could be significant tax implications should they continue to hold these assets in their super post June 30 next year,” he says.

“We have started to list properties under these circumstances for the start of 2017, and anticipate seeing further stock coming onto the market all the way through to June, should the new regulation be passed.”

The Clarendon St property sold on a tight 3.5% yield.

“This asset represented an outstanding investment opportunity, given its attractive tenancy profile and prominent position in South Melbourne,” Hage says.