The Do’s and Don'ts of SMSF Property Development

SMSF Association National Conference 2019

SMSF

SMSFs (self managed superannuation funds) have been carrying on property development activities ever since SMSFs came into existence. Yet despite that there is still a common concern that such activities will cause the SMSF to become non-compliant, or subject to penalties, on the basis that such activities, and in particular undertaking a property development business, are prohibited.

There is no express prohibition on SMSFs undertaking property development activities or a property development business. Rather, the question is whether such activities cause the SMSF to breach the provisions of the superannuation and tax laws.

This paper firstly examines whether an SMSF can carry on a business. Secondly, it reviews the provision of the superannuation and tax laws that must be considered when an SMSF carries on property development activities. Thirdly, various structures are examined under which an SMSF can carry out property development. Finally issues arising out the use of related party builders when undertaking property developments is considered.

Download the full paper to continue reading: Property Development and SMSFs - The Do’s and Don’ts of SMSF Property Development