Federal Budget: Can A Couple Sell Their 10+ Year Home Into Their SMSF?

“Can a couple sell their 10-year-plus home into their SMSF?”

So the answer to that is: I wish we could, but you can only transfer assets that you own outside of super into an SMSF if they’re market-listed shares or commercial real property. So unfortunately we cannot sell a residential property into your SMSF. 

“Does the loss carry back apply to small businesses structures, such as a sole trader or partnership, or trust?”. The answer to that is also no. I feel like a bit of a spoilsport with both those questions, but the loss carry back only applies to businesses structured as a company – so it has to be a company. And you’ve got to make profit in the previous years to be able to go and claim it, anyway. 

The mechanics for that is really quite simple because what they’re doing is, when you do apply that loss carry back, you get an offset of tax in the current year. That offset comes from prior tax that’s been paid by that company, or what we call “franking credits”. And a sole trader and all of that, don’t have that mechanic to do that so that’s why it’s only applied to companies.