Can I buy my business premises through my SMSF?

Answer

Yes, provided the premises meet the business real property definition, and the property is acquired at market value. The property must also be wholly and exclusively used in a business.

It’s important to remember that such a purchase must also meet the fund’s sole purpose test of providing retirement benefits to its members, or a benefit to their dependants if a member dies before retirement. As such, the investment return from the property, through both rental income and capital growth, must be the sole focus for making the investment.

Where a fund buys an existing business property from you, or a related party of the fund (which includes most relatives and associated businesses), the purchase price must be at market value. In addition, if there is a tenancy agreement between the fund and the business it should be based on current market practice and prices.

You can also buy business property that is used in a business that you are not associated with. As an alternative to your fund buying your business premises, you may also be able to transfer it into your fund as an in specie (non-cash) contribution.

We recommend that you speak with a financial adviser to help you decide if buying property through your super fund is right for you.

 

Important information

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It’s important to consider your particular circumstances and read the relevant Product Disclosure Statement or Terms and Conditions before deciding what’s right for you. This information hasn’t taken your circumstances into account.

This information is provided by AMP Life Limited. Read our Financial Services Guide for information about our services, including the fees and other benefits that AMP companies and their representatives may receive in relation to products and services provided to you. All information on this website is subject to change without notice.