The Australian Securities and Investments Commission (ASIC) has decided to undertake a review of its requirement for superannuation funds to disclose the stamp duty paid on real estate acquisitions.

The current requirement, known as “Regulatory Guide 97: Disclosing fees and costs in PDSs and periodic statements (RG97)”, requires superannuation funds to report stamp duty as part of investment fees for direct real estate investments, while similar costs for other asset classes are either capitalised or excluded.

The Property Council of Australia has argued the treatment unfairly penalises real estate and therefore hampers investment in vital infrastructure such as housing, offices, industrial parks and shopping centres that support the growth of our cities.

Key implication: Should the review lead to a change in the regulation then it would remove a material impediment to investment in direct real estate assets by Australian superannuation funds. This would be expected to stimulate investment activity.