Forums / Getting Technical / Legal & Accounting / Security Custodian company

Viewing 3 posts - 1 through 3 (of 3 total)
  • Profile photo of JanetJanet
    Participant
    @jandiroper
    Join Date: 2005
    Post Count: 2

    Hi,

    I’ve just phoned ASIC and discovered that they can’t answer this question for me, I need to advise them!
    We have purchased a residential property in a SMSF, mortgaged to a bank, and were thus legally required to create a brand new pty ltd company to be the Security Custodian owner of the property while it is mortgaged (with the ownership transferring to the SMSF once the loan is fully paid and the mortgage discharged. At this point the company will cease to exist as its sole purpose will have vanished).
    The ASIC fee for the company is $249 this year. However if the company was a Special Purpose Company the annual fee would only be $47.
    One of the three special purpose company possibilities relates to SMSFs, but I don’t know if that is just the trustee of the entire SMSF, or whether this company (required by SMSF regulations to be the security custodian of this one SMSF property as its sole purpose) also satisfies the rules?
    ASIC can’t tell me, I have to tell them! Anyone know the definitive answer?
    Thanks!

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,190

    Not sure what you are asking, but the $47 only applies to the company acting as trustee of the SMSF. The annual fee for the custodian trustee company would be the normal one as it is not a Special Purpose Company.

    BTW there is no law that you must set up a brand new company to act as custodian trustee.

    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
    http://propertytaxbook.com.au/
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

    Profile photo of JanetJanet
    Participant
    @jandiroper
    Join Date: 2005
    Post Count: 2

    Interesting! Thanks very much Terry.

Viewing 3 posts - 1 through 3 (of 3 total)

You must be logged in to reply to this topic.