is intended to be
general in nature and
should not be relied
upon by any person
without seeking advice
concerning their own
circumstances.
Director at William Buck.
of individuals moving their retirement
savings from larger retail funds to a self-
managed superannuation fund (SMSF). One
of the key benefits of moving to an SMSF is
that it provides an individual with greater
flexibility regarding the types of assets that
are funding his or her retirement benefits.
owned by the individual from outside the
superannuation environment and into the
concessionally taxed environment within
the SMSF (with earnings being taxed at a
maximum rate of 15% within a complying
SMSF). Assets held for longer than 12
months by the SMSF get a discount of one
third (i.e. taxed at 10%).
assets supporting the pension in the SMSF
(as well as any capital gains on the sale of
those assets) may not be subject to tax at all.
been a rise in the number of real property
acquisitions within SMSFs. In certain
circumstances, this may include the transfer
(or contribution) of business premises that
you already own to your SMSF.
considered before acquiring property
within your SMSF.
SMSF purchase?
types of property for market value:
property includes property which is `wholly
and exclusively' used in one or more
businesses (whether carried on by the
SMSF or not). The property merely needs
to be used in `a' business in order to be
business real property, so this may include
property which you use in your business.
There is no restriction on who the seller
of business real property is (i.e. it could
be an unrelated third party, or even the
individual). An added benefit of business
real property is that it can be leased to
the individual or a related party. However,
the lease must be on arm's length terms.
considered before acquiring residential
property in your SMSF. Unlike business
premises, your SMSF cannot acquire a
residential property from yourself or a
related party. Furthermore, the residential
property cannot be leased or rented to
you or any related party of the SMSF
already own into my SMSF?
Anna Carrabs outlines the important questions to be asked before you
proceed with signing on any dotted lines.