In Specie Transfers in 2025: Rules, Benefits & How They Work

When it comes to moving investments between accounts, Australians are increasingly turning to in specie transfers for greater control and efficiency. With 2025 bringing fresh regulatory tweaks and sharper focus on asset management, understanding the ins and outs of in specie transfers is more valuable than ever—especially for SMSF trustees and investors keen to avoid unnecessary costs and tax surprises.

What Is an In Specie Transfer?

At its core, an in specie transfer is the process of moving assets—such as shares, managed funds, or property—directly from one account or entity to another without selling them for cash. Unlike a standard transfer that liquidates assets, in specie keeps the original investments intact, preserving their identity, cost base, and market exposure.

Common scenarios include:

• Transferring listed shares into or out of a Self-Managed Super Fund (SMSF)

• Moving property or managed funds between personal names and trusts

• Restructuring family or business asset ownership without triggering a sale

With more Australians managing their own super and investment structures, in specie transfers have become a key strategy for long-term wealth management.

2025 Policy Updates: What’s Changed?

The past year has brought several policy changes affecting in specie transfers, particularly within the SMSF landscape and broader investment environment. Here’s what’s new in 2025:

• ATO Clarifications: The ATO has reiterated that in specie contributions to SMSFs count towards non-concessional or concessional contribution caps, depending on how they’re structured.

• Capital Gains Tax (CGT) Considerations: 2025’s updates to the ATO’s tax ruling TR 2025/D1 clarify that the act of transferring assets in specie can crystallise a CGT event for the transferor, even though no cash changes hands.

• Stamp Duty Relief: Several states, including Victoria and Queensland, have introduced targeted relief for in specie transfers involving SMSFs and family trusts, especially for small business assets and primary residences—though the rules are complex and state-dependent.

• Digital Platforms: Major brokers and super platforms now offer streamlined digital in specie transfer processes, reducing paperwork and wait times.

Staying on top of these regulatory shifts is crucial, as mistakes can lead to tax penalties or rejected transfers.

Benefits and Pitfalls: Is In Specie Right for You?

The appeal of in specie transfers lies in their flexibility and potential cost savings—but they’re not always the right move. Here’s a balanced look:

Key Benefits

• Avoids Transaction Costs: No need to sell assets and then rebuy, so you save on brokerage and minimise the risk of missing market movements.

• Tax Efficiency: Preserves the original cost base, which can be advantageous for long-term capital gains planning.

• Simplifies Administration: Especially helpful for SMSFs consolidating multiple accounts or bringing in family assets.

• Control and Flexibility: You decide which assets move, maintaining your preferred investment mix.

Potential Pitfalls

• CGT Triggers: Even though assets aren’t sold, the transfer itself can create a taxable event for the original owner.

• Contribution Cap Issues: For SMSFs, in specie transfers count toward annual caps, risking excess contributions if not managed carefully.

• Stamp Duty: State-based rules vary, and some transfers may attract significant duties unless specific exemptions apply.

• Paperwork and Processing Delays: Despite digital improvements, some transfers (especially property or unlisted assets) can take weeks to finalise.

How to Make an In Specie Transfer in 2025: Step-by-Step

If you’re considering an in specie transfer this year, here’s how to do it right:

• Check Eligibility: Ensure your asset type is eligible for in specie transfer—most listed shares and managed funds qualify, but some restrictions apply for property and unlisted assets.

• Assess Tax and Duty Implications: Calculate potential CGT and check state stamp duty rules. Consider seeking professional advice if values are significant.

• Notify Both Sides: Inform both the transferor’s and transferee’s brokers or fund administrators. For SMSFs, trustees must document the transaction in meeting minutes.

• Complete Transfer Forms: Use platform-specific in specie transfer forms and provide certified ID as required. Digital portals have sped up this process for many brokers.

• Monitor Progress: Track the transfer status and ensure all assets are properly re-registered in the new entity or account’s name.

• Update Records: For SMSFs and trusts, update asset registers and financial statements to reflect the new ownership.

Real-world example: In early 2025, a Melbourne investor used an in specie transfer to move $200,000 in ASX-listed shares into their SMSF, leveraging new Vic stamp duty exemptions and minimising CGT by timing the transfer after a market downturn.

Conclusion: Harness In Specie Transfers for Smarter Wealth Moves

In specie transfers are more than just a technical tool—they’re a powerful strategy for Australians looking to manage tax, reduce costs, and keep their investment plans on track in 2025’s dynamic landscape. With policy updates making some aspects easier and others more complex, now’s the perfect time to review your portfolio and see where in specie could fit into your wealth journey.