Benefits of owning your business property in a SMSF

Many small and medium businesses adopt the strategy of owning their business premises through their self-managed superannuation fund (SMSF). There are a number of benefits in adopting this strategy:  An important business asset is held in a tax-effective structure (super is generally more tax-effective than other investment vehicles). In the event of financial difficulty, creditors often find it more difficult …

Advantages of owning property through an SMSF

There are a number of advantages to holding property inside an SMSF, as opposed to owning it in your own name. 1. Concessional tax on rental income Where you hold an investment property in your own name, tax will broadly be payable based on your personal rate of tax, which could be as high as 46.5%. Similarly, if you were …

SMSF Property investments using a related unit trust

Can a SMSF invest in property through a related unit trust? An SMSF is prohibited from acquiring assets from a related party, except in limited circumstances. One of those circumstances is where the investment is an ‘in-house asset’. SMSFs are limited to investing 5 per cent of the fund’s total assets in in-house assets, and where this limit is breached …

Franking Credits are Super for your SMSF

One of the advantages of operating a self managed super fund (SMSF) is the ability to purchase investments that pay franked income. Being able to pick and choose your shares to ensure both maximum tax efficiency and a diversified portfolio is one of the big selling points of managing your own superannuation fund. Franking credits from dividends can eliminate or …

SMSF Investment Strategy

An investment strategy is a detailed set of financial rules, behaviours or procedures which acts as a framework for a Trustee making SMSF investment decisions throughout the year. It is a guide for the trustee’s selection of an investment portfolio to increase members’ benefits for their retirement. The strategy should be designed around the current and future financial needs of …