Use your Superannuation Fund

Using your Self Managed Super Fund (SMSF) to invest in property is a great way to create real value in the world through developing land and property based eco-projects that provide a safe investment for your SMSF.

We are looking for groups of 4 people to establish SMSF and invest in eco-projects. 

A SMSF may have up to 4 members. So 4 people can pool their superannuation into one SMSF providing the opportunity to invest into more valuable property.

Benefits of your SMSF investing in property

Diversify your Fund Assets Add property into your investment portfolio, can diversify and reduce risk across your portfolio while still investing for growth.

Repay Loan with Rental Income from the SMSF including rent and other income can be used to repay any loans for the Property.

Receive Tax Benefits SMSFs can use negative gearing to claim a deduction for borrowing expenses, just like individuals.

Pay less Capital Gains Tax (CGT) SMSF CGT is generally capped at 10% and if you start a pension can be as low as 0%.

Reduced tax on rental income Rent received by your SMSF will be taxed at a maximum rate of 15%.  Whereas the tax on rent on a personally owned property could be as high as 46.5% and tax on rent on a company owned property it is 30%

Personal Circumstances Depending on your personal circumstances, there could also be other benefits from holding property within your SMSF.

Rules of owning property in a SMSF

The property must:

• meet the ‘sole purpose test’ of solely providing retirement benefits to fund members
• not be acquired from a related party of a member
• not be lived in by a fund member or any fund members’ related parties
• not be rented by a fund member or any fund members’ related parties

If your SMSF purchases a commercial premises, it can be leased to a fund member for their business. It must be leased at the market rate and follow specific rules. 

More information at moneysmart.gov.au

Please reach out if you have land, capital, ecovillage skills or knowledge or have a strong desire in being a resident in our Ecovillage project.

Wild Community Ecovillages – Michael New – 02-8006-2525 or +61 492829298 – mike@wildcommunity.org