Many Australians are turning to SMSF’s due to the range of benefits they offer. One of these benefits is the ability to purchase investment properties through your SMSF. SMSFs can be used to purchase both residential and commercial properties. One significant benefit of purchasing property through your SMSF is the potential tax savings available to you. SMSF’s are taxed at 15% which is considerably lower than most individual’s personal tax rates.
A major potential tax saving that we can assist you with is Capital Gains Tax (CGT), when the time comes for disposal of said property. For individuals CGT is currently taxed at a considerably high rate, SMSF’s can provide you with a significantly discounted CGT and if your SMSF is in pension mode the potential for the profit to be tax free.
There are also options and avenues to explore should you wish to borrow money in order to purchase an investment property in your SMSF.
Our team of specialists can assist you in all aspects of purchasing a property through your SMSF, from entity structuring through to insurances to ensure the benefits that SMSFs provide are fully utilised.