Self-managed super funds

Self-Managed Super Funds (SMSFs) function similarly to other superannuation funds. Throughout your working life, you contribute to your fund, which is then invested with the aim of building wealth for your retirement years.

Thinking about starting a new SMSF? Absolutely, it’s possible! When you set up a new SMSF with the help of your accountant or financial planner, you can apply for an SMSF loan. You’ll need to provide a history of contributions from your previous super funds and obtain confirmation from your financial advisor or accountant that your assets are being transferred to your new SMSF.

Regarding property investments, an SMSF can purchase both residential and commercial properties, subject to certain conditions:

• The property must be acquired as an investment and rented out to an unrelated party at market rates.
• The investment should not involve property development or construction, and typically does not include vacant land.
• The investment must meet the ‘sole purpose test’ set by the Australian Taxation Office (ATO), ensuring the fund is maintained solely for providing retirement benefits to its members.
• The property cannot be bought from, sold to, or occupied by a fund member, their family, or any close associates. However, a commercial property owned by the SMSF can be rented to a business owned by a fund member, provided it complies with certain conditions and the rent reflects market values.
• When purchasing through an SMSF, only properties with a single title per contract are allowed. For instance, if you wish to buy a duplex spanning two titles sold as one, you would need to restructure the purchase into two separate transactions with individual loans.

If you’re keen to expand your SMSF investment portfolio or have any questions about how an SMSF can benefit you, get in touch with us today. We’re here to help you navigate the complexities of SMSF property investment and optimize your retirement planning.