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Wealth firm talks up SMSF tax benefits

Business owners currently renting are potentially missing out on millions by not purchasing the premises and placing it in their SMSF to claim associated financial benefits, according to a wealth manager with a strong mainland Chinese presence. 

Ausin Group wealth management director Mark Morcos said 60 per cent of business owners who seek advice are unaware of the “significant tax and financial advantages” associated with operating their business from a premises owned by their SMSF.

“We believe that business owners are potentially being disadvantaged by not investigating the option of using a SMSF vehicle to purchase a business premises,” Mr Morcos said.

“By purchasing a building that business owners are currently renting, they have the potential to place themselves in a stronger financial position for the future.”

Mr Morcos said several tax benefits may be gained from placing a business premises into an SMSF, such as property expenses that include interest expense and depreciation allowances which are all tax-deductible.

“For many years, we have been advising clients about placing business premises into a SMSF,” Mr Morcos said.

“This strategy makes smart business sense as their dollars are put to work in an asset that can directly benefit them.


“There is also greater business continuity with the asset and SMSF working together,” he said.

Ausin Group said commercial property is seen as a high-yield investment and hence rent can be used as a significant cash-flow injection directly into the fund, with fees generally being tax-deductible.

The group also said that under the SMSF recourse borrowing arrangements, up to 70 per cent can be borrowed for business premises.