Are You Ready to Manage Your SMSF?
Managing a Self-Managed Superannuation Fund requires time, expertise, and a deep understanding of legislative, regulatory, and investment complexities.
At Ace One, we connect you with a trusted network of professional Chartered Accountants and SMSF specialists who provide expert guidance on structuring and setting up SMSFs. Their knowledge ensures a seamless and compliant process, allowing you to focus on your financial goals with confidence.
Investing in property through an SMSF can be a strategic way to build wealth for retirement. Navigating the complexities of SMSF regulations and property investments requires expert guidance — that is exactly what Ace One delivers.
Our Network Services Include
SMSF Establishment and Structuring
Assisting in setting up your SMSF with a focus on property investment, ensuring all legal and regulatory requirements are met from day one.
Compliance and Administration
Managing record-keeping, reporting, and adherence to superannuation laws to maintain your fund's good standing with regulators.
Investment Strategy Consultation
Developing tailored investment strategies that align with your financial goals and risk profile, maximising long-term returns.
Borrowing Arrangements
Facilitating Limited Recourse Borrowing Arrangements (LRBAs) for property purchases within your SMSF with full regulatory compliance.
Taxation and Audit Services
Providing comprehensive tax planning and arranging independent audits to ensure compliance and long-term efficiency of your fund.
Key Considerations for SMSF Property Investment
Compliance with Superannuation Laws
Ensure all investments align with the Sole Purpose Test, aiming solely to provide retirement benefits to members.
Investment Strategy Alignment
The property must fit within your SMSF's documented investment strategy, considering diversification, risk, and liquidity.
Borrowing Restrictions
SMSFs can borrow under an LRBA only, where the lender's claim is limited to the specific asset purchased within the fund.
Related Party Transactions
Acquiring property from related parties is generally prohibited, except for business real property meeting specific criteria.
Tax Implications
Rental income is taxed at 15%, and capital gains tax may apply upon sale, with potential discounts for long-term holdings.
Liquidity and Diversification
Consider the fund's ability to meet obligations such as pension payments, and avoid over-concentration in a single asset class.
Yes, your SMSF can invest in residential property, provided the purchase complies with superannuation laws and aligns with your fund's investment strategy. The property must be acquired from an unrelated party and cannot be lived in or rented by fund members or their relatives.
Yes, SMSFs can borrow funds to purchase property through a Limited Recourse Borrowing Arrangement (LRBA). This arrangement limits the lender's claim to the specific property acquired, protecting all other assets within the fund.
Rental income from property held within an SMSF is taxed at a concessional rate of 15%. If the property is sold during the accumulation phase, capital gains are taxed at 10% if held for more than 12 months. In the pension phase, both rental income and capital gains may be completely tax-free, subject to certain conditions.
Generally, SMSFs are prohibited from acquiring property from related parties. However, an exception exists for business real property used exclusively in one or more businesses. Such transactions must comply with superannuation laws and be conducted at market value.
Ongoing responsibilities include ensuring the property remains compliant with superannuation laws, maintaining adequate insurance, regular property valuations, and meeting all SMSF reporting and auditing requirements. Engaging professionals from our network can assist effectively.
Helping You Make Informed Financial Decisions
Embarking on property investment through an SMSF is a significant decision that requires careful planning and expert advice. Ace One is committed to connecting you with the right professionals to navigate this complex process, ensuring your investments are both compliant and aligned with your retirement objectives.