This is in particular the year 2000 of the SMSF to people close to it. Make sure the lease is based on arm length. They need a fair rent. Otherwise, the SMSF will be taxed at 45% on its income without tax on the arms. Your self-managed Super Fund (SMSF) may own commercial properties. The SMSF can even lease the commercial property to a member. However, the commercial lease must comply with the law. Specific rules are needed when developing the SMSF Commercial Lease Agreement. If a member rents commercial properties to his SMSF, seven additional rules apply. Special rules apply when a SMSF is rented to a "linked party." Our SMSF Commercial Lease complies with the seven rules of the strict superannuation law: if you intend to incriminate your tenant exits, you must indicate the exits in your lease, otherwise you will not be able to recover them. Unless indicated in your tenancy agreement, it is unlikely that you will generate rent for the duration of the lease. If your lease applies to retail properties, you must also include the details of all rent assessments in the disclosure statement given to the tenant prior to signing the lease. It is important that real estate such as facilities, equipment, motor vehicles, water rights, which can be treated separately from land, etc., is not a "real property." When this type of asset is held by a WSSA and leased to related parties, they are called "internal assets." The total amount invested by an SMSF in internal assets must not exceed 5% of the total value of the fund`s assets.
About 10% of SMSF own commercial real estate and often this commercial property is leased to a nearby party (z.B. a company owned by the members of the fund). If you have used a similar strategy with your SMSF, there are a number of rules to follow to ensure that the agreement complies with superannuation/tax laws. If the tenant is late in the terms of the lease, do not rush like a bull to a door and take possession of your premises. You still have certain obligations to the tenant, such as. B.dem tenants to enjoy quietly, which still must be respected. A tenant obtains certain rights under the law if ownership of the premises is granted. If the terms of the tenancy agreement are not negotiated and concluded before the tenant moves in, this can cause problems on the way.