Can I buy my business premises using self-managed super?

We’ve recently created a video series talking all things business, strategy and retirement - if you haven’t already checked that out, make sure you do - but we’ve had a few questions off the back of that series which we wanted to answer here.

One of those questions is: can I use my self-managed super to buy my business premises?

The short answer is yes! And often it’s a great, effective way to start building some wealth outside your business.

There are a few different ways to approach this scenario - you could buy your business premise with your business partners or with your spouse depending on your situation.

There are some costs and risks involved that are important to understand, but if you decide to proceed it’s a case of taking the money in your self-managed super fund or getting a loan if needed, buying the premises and starting to pay rent back to yourself instead of to a landlord.

One of the best parts about this strategy is that instead of paying tax on your rental profits at 30%, because the premises and the profits associated are owned through your super, you’ll only be paying tax at 15% - so this is not only a wealth building, but a tax minimisation strategy.

There are a few other things involved which we can talk through if you’re interested, and you can also check out our videos on self-managed super if you’d like a bit more information. Get in touch via our website www.financialedgegroup.com.au