Home topics finance finance-cash-flow Accounting Advice Cashflow Accounting Using superannuation to buy your business premises: How to Chris Balalovski June 14, 2012 As a business owner, you face the constant decision of how much to allocate to superannuation versus how much to invest in business assets such as stock, equipment and your premises. However, if you own your own business and also have a self managed super fund (SMSF), you can have the best of both worlds, by borrowing within your SMSF to purchase your business premises. This allows business owners to access the funds currently ‘trapped’ within superannuation, while offering the following business benefits: Tax advantages: by paying rent directly to your SMSF as the owner of the property, the rental income and capital growth is retained in the concessionally-taxed superannuation environment. In some cases, this may even be tax-free. Additional cash: if you already own your business premises, you can sell the property to your SMSF and release that cash, which you can then use for any purpose, including reinvesting it in your business. Asset protection: by holding your business premises within superannuation, you’ll have greater protection from creditors. The Strategy To be able to acquire your business premises through your SMSF , it must be classified as ‘business real property’, a requirement under the Superannuation Industry (Supervision) Act 1993 (Cth). This means that the property must be used wholly and exclusively by at least one business, excluding home offices within residential properties that do not classify as