Can my Superannuation Help Me in My Small Business

Welcome to this weeks’ episode of The Australian Small Business Show!In today’s episode we are leaning into Matt’s expertise and talking about superannuation and how we small business owners cane it to help them in their business, legally. We discuss a specific strategy using property and also why it is important for small business owners to engage with the superannuation well before they need it.The information discussed today is general in nature, and not legal or financial advice. We start this discussion by looking at what superannuation is, and the difference between a retail or industry fund and a self management super fund (SMSF).Whilst Superannuation is meant for retirement but can be used in specific legal ways to benefit business owners. Self-Managed Super Funds (SMSF) allows business owners to have greater control over their investments which can offer benefits such as the ability to purchase commercial property and lease it back to the business.There are a number of legal requirements to consider, which we touch on today including:Must meet the Sole Purpose Test (benefit for retirement only).   Investments must be at arm’s length (market rates, no personal benefits).Compliance with ATO & ASIC regulations is essential.Buying Commercial Property with Super: How it works:Your SMSF purchases a commercial property.Your business leases it at market rates.Instead of paying rent to a landlord, you are contributing to your super.Some of the benefits include long-term security for your business premise, the rent payments boosting your super balance and there may also be tax advantages available.Some key risks and considerations include that the property must be commercial or industrial, not residential, SMSF borrowing rules apply and must be followed. Also, Professional advice required for legal compliance. SMSFs are complex and must comply with strict regulations.Next Steps:Matt has just launched a subscription call Best Practice SMSF. Join hi community and also get access to Monthly webinars, guides, templates and checklists for SMSF Trustees and anyone interested in Self-Managed Super - Check it out here - Join Our Community | Best Practice SMSFConnect with Us:If you're an Australian Small Business Owner, we'd love to connect with you on socials. You can give our Facebook Page a like here: https://www.facebook.com/theaustraliansmallbusinessshowOr follow us on Instagram here:https://www.instagram.com/aussmallbizshow/* Disclaimer: The information shared on The Australian Small Business Show is general in nature and does not constitute professional advice, legal or otherwise. We recommend consulting with your advisors on your specific circumstances.