Self-Managed Funds—the Advivo Way

One of the big advantages of setting up your Self-Managed Super Fund (SMSF) is the ability to make investments the way that best suits you, and for some, this includes property.

If you’re thinking about purchasing commercial property through your SMSF, it’s important that you understand exactly what’s involved.

Business owners often set goals to purchase their business premises to operate from. One of the reasons for that goal is that historically, investment in property is considered low risk and generates a steady return.  Why not pay rent to yourself rather than to someone else?

The benefits of acquiring commercial property within an SMSF include:

  1. Pay rent to yourself rather than to someone else.
  2. Business gets to claim deductions at 26% (SBE Co. rates FY 2021) and SMSF pays tax at 15% (or potentially tax free once retired or over 65 years of age)
  3. Property growth (capital gain tax) of 10% tax (33.3% discount and tax at 15%) in an SMSF compared to no discount in a company with 26% tax and 50% discount tax at marginal tax rate up to 45%.
  4. Asset protection – assets held within SMSF are protected from creditors
  5. Security of tenure for the business in its premises.

This is general information only and in spite of the numerous benefits of owning commercial property within your SMSF, it’s important to ensure you receive personalised advice tailored to your circumstances to ensure such a strategy is right for you.

ADVIVO – WHAT DO WE DO DIFFERENTLY FOR SMSFs:

Compliance for Self-Managed Superannuation Fund’s is complex, and the regulations change from time to time. One of the requirements of the Superannuation Industry Supervision Act (SIS) is that trustees of the superannuation fund ensure the fund is compliant. The penalties for non-compliance are calculated in units, ranging from 5 to 60 units at $210 per penalty unit. Thus, the penalties range from $1,050 to $12,600 for breaching the SIS.  Non-compliant funds will be taxed at 47% of the superannuation fund’s yearly income or could even lead to jail time.

The costs associated with running a SMSF are competitive from firm to firm, but a lot of providers rely on the trustee to maintain fund compliance. The question is how an average person or business owner has the knowledge or skills to run SMSF without assistance.

Why choose Advivo and what do we do differently?

  1. We are using one of the most advanced software for our superannuation fund compliance work, which provides live bank feeds and data imports.
  2. Login is provided to members, meaning they can login anytime to see their balance online
  3. Monthly processing – clients send us the information as they receive it rather than sorting through everything at year end
  4. Friendly staff who are easily approachable and always thinking from the client’s perspective
  5. Taking extra steps to ensure a streamlined process for our clients’ experience.

Contact us today about how we can help you understand the tax benefits of owning a commercial property within your SMSF.

No Advice – Disclaimer:
The information contained at this event is general information only and has been prepared without taking into account your personal objectives, financial situation or needs. The information provides a high level summation of selected parts of legislation only. The legislation is complex and includes a number of conditions and overrides that may apply to individual situations. Interpretation and application of the information to your specific circumstances requires consultation with an accountant with a detailed understanding of your personal and taxation affairs and a qualified financial advisor before taking any action.
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Talk to Us

Get in touch with us if you need to learn more and further understand the tax benefits of owning a commercial property within your SMSF. Contact us today on 07 3226 1800 or email us at info@advivo.com.au for more details.