Our clients, business owners in their mid-40s, needed larger premises to support growth but were concerned about rising commercial rents and did not want to use personal funds to purchase a property. They were leasing at the time and held superannuation in retail funds with limited control. Their goals were affordability, business stability, and improved long-term retirement outcomes.

We assessed their circumstances and modelled three options:
Continuing to lease and absorb increasing rental and relocation costs
Purchasing the property personally using home equity

Acquiring the premises through superannuation via an SMSF

Following detailed cash flow, tax, and long-term planning analysis, purchasing the premises through an SMSF was identified as the most tax-effective and strategic solution.

We assisted the clients to establish an SMSF and Bare Trust, consolidate their existing superannuation, secure SMSF lending, and implement a tax-effective debt reduction strategy. The business now leases the property from their own super fund.

Key outcomes included:

+ Loan repayments lower than previous lease payments

+ Property on track to be paid off in under five years

+ Long-term security and control over the business location

+ Rental income and future capital growth expected to be tax-free in pension phase

+ Significant ongoing tax savings

What began as a leasing concern evolved into a strategy that improved business stability, strengthened retirement outcomes, and supported future growth.