SMSF Lending & Wealth Creation Structures

SMSFs are becoming an increasingly attractive vehicle for long-term wealth accumulation and asset ownership. 

Importantly, SMSFs can provide several unique advantages that many investors are unaware of, including: 

• investment income within superannuation generally taxed at up to 15% in accumulation phase, 

• capital gains on assets held longer than 12 months potentially taxed at an effective rate of 10% in accumulation phase, 

• the ability to invest via company structures alongside broader wealth planning strategies, 

• continued access to borrowing strategies through limited recourse lending arrangements, 

• and the potential for tax-free income or gains in retirement, subject to legislative limits. 

One of the most powerful opportunities currently available within SMSFs is the ability to utilise concessional contributions to accelerate deposit accumulation. 

Under current legislation, eligible investors may be able to carry forward unused concessional contribution caps for up to five financial years. In some circumstances, this can allow investors to contribute a substantial lump sum into superannuation and potentially claim the contribution as a tax deduction. This can significantly improve deposit capacity for SMSF property purchases while also creating meaningful tax efficiencies. 

Additionally, some lenders may consider ongoing concessional contribution commitments as part of servicing assessments, which may improve borrowing capacity depending on the lender and structure used.

Are you interested in buying property through your SMSF? Speak to Shore Financial about your finance options. Call us on 1300 416 700, email us on info@shorefinancial.com.au or fill in this online form.