SMSF Loans
5 Reasons Your SMSF Could Be the Most Powerful Asset in Your Business Toolbox
Self-Managed Super Funds (SMSFs) aren’t just for retirement – they’re fast becoming a strategic tool for savvy business owners looking to fund growth, reduce tax and build wealth.
Here’s how.
1. Buy Your Business Property – and Pay Rent to Yourself
One of the smartest strategies? Use your SMSF to buy your business premises and lease it back to your company. Under current rules, SMSF’s can acquire ‘business real property’ and rent it to a related party if it’s on commercial terms.
That means your business gets secure premises and your super fund receives steady rental income taxed at just 15% or even 0% if it’s in pension phase.
Key benefits:
- Lock in long-term premises for your business
- Rent goes back into your SMSF
- Super income taxed at just 15% (or potentially 0%)
- Keep strategic control of a major asset
Once you retire or sell the business, the SMSF still owns the property which can be rented out to a third party or sold to support your retirement.
2. Yes, Your SMSF Can Borrow
Many business owners don’t realise that SMSF’s can borrow through what’s called a Limited Recourse Borrowing Arrangement (LRBA). This allows your SMSF to purchase a larger asset by combining super contributions with borrowed funds.
If anything goes wrong, the lender’s claim is limited to that specific asset and not the rest of your fund.
Why it’s potentially powerful:
- Buy higher-value assets
- Use rental income and contributions to repay the loan
- Leverage while protecting the rest of the fund
Lenders generally require a 30 – 40% deposit but the potential long-term growth is worth exploring.
3. Restructure to Unlock Capital
Already own commercial property outside your SMSF? You might be able to transfer it into your SMSF through an ‘in-specie’ contribution – freeing up capital and turning business assets into super wealth.
Some transfers may qualify for small business Capital Gains Tax (CGT) concessions.
What you potentially gain:
- Unlock working capital
- Reduce tax exposure
- Build long-term retirement wealth
It requires careful planning – but the result is a more strategic and potentially be a more tax-effective ownership structure.
4. Cut Tax and Grow Wealth Faster
An SMSF only pays 15% tax in accumulation phase and 0% in pension phase. That’s a huge opportunity for smart tax planning.
Strategies may include:
- Making concessional (tax-deductible) contributions
- Timing capital gains to occur in pension phase
- Splitting contributions with a spouse
- Catching up with unused contribution caps
Done well, this could potentially dramatically boost your retirement balance.
5. Build Wealth Across Generations
With up to six members allowed, SMSF’s make it easier to pool family resources, reduce costs and pass on wealth.
Benefits:
- Consolidate super into one fund
- Control how benefits are distributed
- Improve estate planning
You’re not just planning for your retirement – you’re building a legacy.
Why Choose Hawkview Partners as Your Mortgage Broker?
At Hawkview Partners, we work closely with business owners who want more than just compliance. We have access to an array of specialist SMSF lenders and bring a strategic lens – helping you structure your SMSF loan to fund business growth, acquire property, and maximise long-term impact.
Want to explore what’s possible?
Get In Touch!
Let us help you navigate your financial future with confidence and unlock your possibilities.