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.