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Re: Buying a commerical property with my super

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Newbie

Views 1017

Replies 2

Hi

I was born in Autsralia and did work in austarlia up to 1990 when i moved to NZ..i,m now 50  years old

I have lived in new zealand for over 20 years but over the last 6 years have worked in austarlia FIFO in oil and Gas industry.

I want to use my super to buy a commerical buliding in new zealand

is this allowed

1 ACCEPTED SOLUTION

Accepted Solutions
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Best answer

Enthusiast Registered Tax Practitioner

Replies 1

Hi there,

 

Yes - this strategy is possible with an SMSF.

 

There are additional complexities, including the fact there will need to be NZ tax return lodged with Inland Revenue for the property and tax paid in NZ.

 

When you've retired you may have a situation where tax is withheld in NZ however no tax is payable by the SMSF on the net income (rent less expenses) from the property in Australia which eats into your returns as the NZ tax is non-refundable (prior to them the NZ tax will offset the Australian tax the SMSF pays 15%).

 

You don't mention whether you are an Australian resident for tax purposes.  For an SMSF to be feasible you need to be an Australian resident - it's a deceptively complex area and I suggest you look here: https://www.ato.gov.au/super/self-managed-super-funds/setting-up/check-your-fund-is-an-australian-sup...

 

It's a pretty big decision and you will need to get some very specific advice and do your research before moving forward.

 

SFP

2 REPLIES 2
Highlighted

Best answer

Enthusiast Registered Tax Practitioner

Replies 1

Hi there,

 

Yes - this strategy is possible with an SMSF.

 

There are additional complexities, including the fact there will need to be NZ tax return lodged with Inland Revenue for the property and tax paid in NZ.

 

When you've retired you may have a situation where tax is withheld in NZ however no tax is payable by the SMSF on the net income (rent less expenses) from the property in Australia which eats into your returns as the NZ tax is non-refundable (prior to them the NZ tax will offset the Australian tax the SMSF pays 15%).

 

You don't mention whether you are an Australian resident for tax purposes.  For an SMSF to be feasible you need to be an Australian resident - it's a deceptively complex area and I suggest you look here: https://www.ato.gov.au/super/self-managed-super-funds/setting-up/check-your-fund-is-an-australian-sup...

 

It's a pretty big decision and you will need to get some very specific advice and do your research before moving forward.

 

SFP

Highlighted

Devotee

Replies 0

Very nice