Tax Planning Strategy 156 | Using a SMSF to Undertake Property Development

Tax Planning Strategy 156 | Using a SMSF to Undertake Property Development

30 November 2017

SMSF property development tax

Undertaking a property development in a SMSF can result in zero tax payable if the fund is in the pension phase (or 15% if the fund is in the accumulation phase).  

Extra care must be undertaken to ensure that the super fund complies with the SIS Act, including all of the following: 

  • The arm’s length rules under S.109. 
  • The sole purpose test under S.62.
  • Complies with the investment strategy of the fund.
  • That any borrowings are for a single acquirable asset and comply with S.67A. 
  • Assets are not acquired from related parties and breach S.66.

Talk to your accountant or tax agent to ensure compliance.

Posted in , ,

Categories

Similar posts you may like

  • Niue

    Capital city:              Alofi Currency:                  New Zealand dollar (NZD) Population:              1,470 (predominantly Polynesian) Language:                Niuean (official) 46% & English Read more

  • Tax Savings Strategy 202 | Uber Partners

    This strategy is about using your private vehicle to operate an Uber business and make additional income (whilst at the same time making your Read more

  • Estonia

    Capital city:                Tallinn  Currency:                    Euro (€)     Read more

  • Corruption and Tax Havens

    Corruption is a form of dishonest or unethical conduct by a person entrusted with a position of authority, often to acquire personal benefit. Government Read more

"You’d be stupid not to try to cut your tax bill and those that don’t are stupid in business"

- Bono: U2