SMSF

Self-Managed Super Funds (SMSFs) follow a foundational concept akin to other superannuation funds. You contribute to your fund throughout your working life, which are then strategically invested to build wealth for your post-work years.

Thinking of setting up a new SMSF? It’s entirely achievable! With guidance from your accountant or financial advisor, you can set up an SMSF and apply for an SMSF loan. You’ll need to provide evidence of past contributions from other super funds and have your financial advisor or accountant confirm the transfer of assets into your new SMSF.

SMSFs can purchase both residential and commercial properties under certain conditions:

• The property should be bought as an investment and leased to someone who is not related to you at fair market rent.
• The investment must steer clear of property development or construction activities, and buying vacant land is generally not included.
• The investment needs to pass the ‘sole purpose test’ from the Australian Taxation Office (ATO), which ensures the fund exists only to provide retirement benefits to its members.
• The property should not be acquired from, sold to, or used by a fund member, their relatives, or any close relations. However, an SMSF can lease commercial property to a member’s business, as long as it meets specific criteria and the lease is set at market rate.
• When buying property through an SMSF, each purchase contract must correspond to a single title. For instance, if you’re eyeing a duplex that spans two titles but is on offer as one unit, you’d need to split the acquisition into two separate transactions with individual loans.

If you’re looking to expand your SMSF investment portfolio or have questions about how an SMSF could benefit you, please feel free to reach out to us. We’re on hand to help you understand the complexities of SMSF property investment and to support your retirement planning efforts.