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.
- 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.