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Make business property acquisitions extra profitable using
your smsf

You could be reaping substantial tax and wealth-creation benefits
by purchasing or transferring existing property through a
self-managed super fund.
Call us on 02 9211 6000 today or request a call back from a
self-managed super specialist to learn more.

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Why you should purchase commercial property through super

SMSFs have skyrocketed in popularity among business owners. Here’s why: Not only can they add wealth to
your retirement nest egg but they also let you manage commercial property tax-effectively.

Six reasons to buy your business premises through your super

 

1. Unlock cash that’s tied-up in your business premises

By purchasing a commercial property owned by you personally, a family company or trust, through an SMSF, you
can unlock cash that’s tied-up in your business. Use this cash instead for reinvestments back into your business,
to help finance other personal assets, or to reduce your non-tax-deductible home loan debt.

2. Keep your business premises protected in your family for generations to come

You can pass your business property down to future generations with minimal fuss and little to no tax
consequences while, at the same time, keeping that property out of reach from future-generation
family breakdowns, creditors, and lawsuits.

3. Protect your property from creditors and lawsuits

Assets in SMSFs are protected from bankruptcies and lawsuits. Should you or your business face litigation or
should your business file for bankruptcy, your business property will be insulated from creditors – including the
Australian Taxation Office.

4. Lease your business premises from your SMSF

If you own your business premises through your super fund, you can lease it to your business – and the rent you
pay to your SMSF is generally a business tax deduction as are all other expenses including interest, depreciation
rates, and insurance. Just imagine the savings!

5. Avoid purchasing property outright

If you don’t have enough money to buy your business premises outright, your SMSF could borrow the shortfall
from a bank. All your fund will need is the correct structure and enough savings to pay for a 30 percent deposit
plus costs.

6. Access sizable tax savings and increase your return on investment

This includes:

 

 
  • Rental income will be subject to a maximum 15 percent tax rate as opposed to company and marginal tax rates that range from 28.5 to 49 percent
  • If you buy and hold your business premises through your super and sell when you start drawing a pension, that property will be exempt from capital gains tax– saving you hundreds of thousands of dollars in taxes.
 
 
  • If you sell your property before you start drawing a pension and your SMSF has owned the property for more than 12 months, you’ll only pay a maximum capital gains tax rate of 10 percent
  • Any rental income you receive while you draw a pension will also be tax-free revenue.
 
 
  • You can use negative gearing benefits to completely eliminate your fund contributions and income tax
 
 

Learn more about buying property through a self-managed super fund today.

 

 
  • Are you doing everything you can to maximize your super?
  • Are you familiar with all of your super options?
 

 

 
  • Could you be missing out on significant tax-saving and wealth-building opportunities?
 
 

 

Contact us today to see how we can help you better manage your super.

 

Request a call back >

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We provide Accounting, Audit, Tax (Company, Individual & SMSF) and Advisory Services specialising primarily with but not exclusively to the travel industry. We believe we provide our Travel Agent and small business clients with the best advice and service. Our Travel agency clients benefit from our long standing experience in the Travel Industry and knowledge of the compliances associated with IATA.

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