You generally cannot use the assets of an SMSF for private or personal use under the sole purpose test. Essentially this means you cannot use the property as your private residence, although some exceptions apply to rural properties. You also cannot use the property as a holiday home, or rent it to family members. Generally this is the case even if you or the family members agree to pay a market rate of rent to live in the property.
However, if the property meets the definition of business real property, you can lease the property to your business as long as it is at a commercial arm’s length basis. An example of this might be where your SMSF owns an office suite, or a warehouse.
We recommend that you speak with a financial adviser to help you decide if buying property through your super fund is right for you.
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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.