Do you own your business premises or thinking about purchasing it? If you purchase those premises through a Self Managed Super Fund (SMSF) you could be making a valuable long term investment and pay less tax!
The premises can be leased to your business at a maximum tax rate of 15%, this is very favourable when compared to personal or company tax rates. Unlike residential property, your SMSF can acquire the business premises from a related party. So if you or your business already own the premises generally your SMSF can purchase this from you (the premises must be used 100% for business and cannot involve borrowed funds).
The tax rates within the SMSF make it attractive from a Capital gains tax point of view and if you hold and dispose of the asset in retirement you may not pay any CGT at all!
Before switching to a SMSF we recommend you speak with a financial adviser to see if it’s the right choice for you.
by Simon Tworek
Simon is a Financial Adviser at Insight Wealth Planning. He has an advanced diploma and masters in Financial Planning and has a strong technical background.
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