If you want to invest more money in your SMSF, it's important to understand how you can contribute, the types of contributions and the caps that apply, who can contribute and implications if you have not provided a valid tax file number.
Contributions can be made into an SMSF in two ways. One is for you or your employer to make contributions by depositing cash into your SMSF's bank account, where the money can then be used to purchase investments. The other is to make an 'in-specie' contribution. This is where you contribute an asset into your SMSF, rather than cash. The types of assets that can be 'in-specie' transferred into an SMSF include:
business real property (eg a warehouse from which a business is run either by yourself or another entity)
listed securities (eg shares in companies listed on a stock exchange)
units in widely held unit trusts (eg publicly available managed funds), and
investments in a related party or other In-house assets where the value doesn't exceed 5% in total of the market value of the fund's assets.
Capital gains tax may be payable when you make 'in-specie' contributions, as the transfer is usually considered a disposal by you for tax purposes. Other costs may also be incurred, such as stamp duty.
There are three types of contributions that can be made into super. These are 'non-concessional' contributions, 'concessional' contributions and 'CGT-exempt' contributions. All three types of contributions can be made with cash or via an 'in-specie' asset transfer, subject to certain acquisition rules. There is also a cap on how much of each of these contributions you can make each year and penalties may apply if you exceed these caps. Find out more about the types of contributions.
To transfer your holdings from another broker to nabtrade you’ll need to;
Visit nabtrade.com.au and select ‘Join Now’
Complete the online application form
Post in certified copies of your Trust Deed
Complete a Broker to Broker form to transfer any holdings from your existing broker
Helpful Hint: It is important when completing the application form that your application matches the details of the trust deed. Should you be moving across from another broker, it is also important that your CHESS registration details with the other broker match your new nabtrade CHESS registration details to ensure a smooth transfer. These CHESS details can be found on any confirmation notes; dividend or holding statements.
*Domestic equities, warrants and International trades up to and including $5,000 are $14.95 per online trade. For trades over $5,000, brokerage is $19.95 per online trade (up to and including $20,000). Over this amount, brokerage of 0.11% of trade value per online trade applies. GST applies only to domestic brokerage. All fees and charges are charged in Australian dollars. Each international trade will include a foreign exchange conversion spread on the transaction value. The spread ranges from 0.50% to 0.80%, depending on the transaction value. This is subject to change at any time. For more details on fees and charges refer to the nabtrade Financial Services Guide.
The nabtrade service (nabtrade) is the information, trading and settlement service provided by WealthHub Securities Limited ABN 83 089 718 249 AFSL No. 230704 (WealthHub Securities), a Market Participant under the ASIC Market Integrity Rules and a wholly owned subsidiary of National Australia Bank Limited ABN 12 004 044 937 AFSL 230686 (NAB).
Investing through the nabtrade Global Market Trading service is not the same as investing directly. The nabtrade Global Market Trading service is an international share trading, nominee and custody service. Although you’ll be the beneficial owner of the relevant International Securities, the legal interest is held by the Custodian or Sub-custodians and they will receive all communications regarding your investments on your behalf, including notification of shareholder meetings, upcoming corporate events and dividend information.
NAB doesn't guarantee the obligations or performance of its subsidiaries or the products or services its subsidiaries offer. nabtrade doesn't provide personal advice to clients and is available to persons accessing these financial services and products while in Australia. Information has been prepared without taking into account your objectives, financial circumstances, or needs. Before acting you should consider the appropriateness of the information or general advice with regard to your objectives, financial circumstances or needs. Where the information or general advice relates to a financial product, you should consider the relevant Product Disclosure Statement or disclosure documents available at nabtrade.com.au. The value of investments and future returns may rise or fall and, at times, returns may be negative. Past performance is not a guarantee of future performance.