Property Purchase

Using the superannuation funds to purchase property enables SMSF trustees to benefit from a number of tax concessions.

The maximum rate of your SMSF will pay on rental income is 15% and if your SMSF is in the pension phase the tax rate is Nil. This is a major advantage compared to personally held property, where rental income is taxed at your marginal rates, which could be as high as 46.5%.

Also complying SMSFs are entitled to a CGT discount of one-third, if the relevant asset was owned for at least 12 months. Which means Capital Gains could be taxed at a maximum rate of 10%, or nil if the SMSF is in the pension phase.

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