Self-Managed Superannuation Funding

Strategic Advisory

Self-Managed Superannuation Funding

A Self-Managed Superannuation Fund or SMSF is an entity that is set up with the purpose of providing its members with retirement benefits. An SMSF can have up to four members who may or may not be related such as a spouse, family member, business partner or friend, over the age of 18. An SMSF operates in the same way as an existing superannuation fund but you are able to choose how to invest the money within the legislative rules. An SMSF is established upon the execution of a trust deed and a corporate trustee may be appointed to provide strategy.

Some advantages of using a SMSF are:

  • Greater investment choice and control over investment strategies
  • A maximum 10% capital gains tax on sale of property if it is held for at least 12 months
  • Potentially nil Capital Gains Tax on sale of a property if it is sold after the age of 55
  • Maximum of 15% tax on rental income
  • All rental income received assists in paying off the mortgage loan
  • Your personal cash flow may not be affected, as opposed to negative gearing
  • You may receive a tax deduction by salary sacrificing into your SMSF which can then purchase the property direct via your salary sacrifice contributions
  • Any expenses such as interest, council rates, insurance and maintenance may be claimed as tax deductions by your super fund – thereby potentially reducing its tax liability
  • Provides one of the highest levels of asset protection; more so than a family trust
  • Can be passed inter-generationally through the family

The Superannuation Industry Supervision Act 1993 was amended in 2007 to allow Self-Managed Superannuation Funds (SMSF) to buy property and borrow money within their SMSF. More Australians are discovering the power of using their SMSF to diversify their investment portfolios to gain leverage, tax advantages and other benefits.

We are able to assist you in obtaining the finance required and guide you through the entire process in conjunction with the use of other specialists if required. As SMSF loan specialists we are aware of a multitude of strategies and loan products to ensure you optimise your property purchase within your SMSF.

Investors require a combination of the right professional experts to work in-sync with one another to ensure a desirable outcome.