Buying a Commerical Property in a SMSF

There are several compliance issues that need to be considered and dealt with. Please contact Supercorp before signing a contract. In addition, advice should be sought from your accountant and your solicitor.

Firstly, GST may be a factor. If the seller is registered for GST, then generally the contract must include GST in the price. If the seller wishes to rely on the going concern exemption, then certain conditions must be met, including the super fund (the buyer) also being registered for GST. If the super fund is registered for GST, then GST must be added to the rent from settlement.

Secondly, the correct names must be used for the super fund. This means that both the trustee names and the fund name must appear on the contract. If there is a company as trustee, that company name and the fund name will appear on the contract as the buyer. If there are individual trustees, all their names plus the fund name will appear on the contract as the buyer.

Thirdly, rent must flow to the super fund after settlement. This is particularly important if a related party (say a member or the employer) is the tenant. Such rental arrangements are usually within the compliance guidelines but normal commercial conditions must be applied. This will include market rent, rental payments being in advance, etc.

Please ensure that copies of the contract and the settlement letter are forwarded to Supercorp.

Print Fact Sheet