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Buy your business premises in your SMSF

This strategy involves purchasing your business premises in your self-managed super fund (SMSF).

This has the following advantages:

  • Your superannuation is used to partly (or fully) purchase your premises.
  • You are effectively paying rent to yourself.
  • The business receives a tax deduction for any rent paid to the SMSF.
  • The SMSF is only taxed at between 0-15% on the rent received.
  • Asset protection – SMSF assets are protected in the event the business or owner has financial difficulties.

Implementation process:

  • Establish the SMSF.
  • Roll in the member’s public offer superannuation balances.
  • Investigate suitable premises to purchase.
  • Have the SMSF purchase the premises (with bank financing if required).
  • Prepare the arms-length lease agreement.
  • Ensure market rent is paid as per lease agreement.