Self Managed Super Fund Borrowing – New Publications Available now.

Two new publications are now available for reading on our website relating to Self Managed Super Fund Borrowing.  Check them out under the Publications tab or click here.

Small business owners – plan now or pay later!

How you get into your business now can have drastic financial implications for everything from the day to day running to how you get out of it later.  The earlier you start planning the greater your ability to take advantage of the array of concessions and exemptions offered for tax, duty and superannuation.

small business planningGetting into small business – plan ahead!

Business restructures can involve capital gains tax and stamp duty implications, which will increase with the value of a business. It follows from this the best time to plan an effective structure of your business is before it begins trading or otherwise as early as possible. The longer you leave a restructure the greater the tax liabilities to be incurred as your business continues to (hopefully) grow in value.

Getting out – more than just a for sale contract!

When planning your business structure it needs to take into account more than just your current circumstances and tax needs. Are you married? How long do you plan on staying in business? How big will it grow? What is to happen in the unfortunate event of illness or death to a key member? What will happen in the event of bankruptcy?

These are just some of the factors which will impact upon which structure is best for your future needs.

Business acquisition of its rented premises?

Does your business rent premises which you may be able to purchase in the future? The ability to purchase may be easier than you think but you should always receive advice before signing on the dotted line.

Changes in the last few years have opened up the ability of Self-managed Superannuation Funds (SMSF) to borrow in order to acquire real property. This can enable your own SMSF to acquire the whole or part of your business premises but not where you already own it! Your business will then lease the premises from your SMSF. The main benefits of using a SMSF to acquire your premises are:

  1. Asset protection – generally your superannuation fund and property held by it will be safe from creditors in the event of bankruptcy.
  2. Less tax – income for a SMSF is taxed at a lower rate than for a company and generally lower than a trustee of a trust or individual. Your SMSF can also claim a deduction for the interest on loan repayments.
  3. Tax deductions – Your business will still be able to claim a tax deduction for rent paid to your SMSF. If your business purchases the property itself would only be able to claim interest on repayments as a deduction.

Due to the impact of specific facts on any given case please treat this information as a general guide and not as legal advice. If you are small business owner and curious about how we can help achieve your goals please contact Adam Robinson.