Recontribution Strategy

I have a SMSF with my wife and I as Trustees, in accumulation phase which holds a property valued at $200,000. According to the balance in the Accumulation account, I have a 63% interest and my wife has a 37% interest in the property.

I am 64 and my wife is 61.

Since a balance in accumulation phase is not taken as an asset for a Pension, is it possible to draw out my share of the $200,000 and recontribute it to my wife as an undeducted contribution thus reducing my balance in the accumulation phase to nil. 

Being a property instead of cash, how should this be done.

You cannot do what you are asking with the property, only with the cash in the fund.

You can however use whatever cash is in the fund to make a series of cash withdrawals and re-contributions before you turn 65* to do what you are talking about. More cash gets this done quicker, but it can be done with less.

You probably know these withdrawals will not have to be reported to the ATO, nor will they be taxed, however you will have to prepare a set of SMSF paperwork for each where you request each payment from the fund and the fund resolves to pay it to you.

* (when you will have to meet a work test to be able to contribute)