A few weeks ago, the government struck a deal with the Greens to stop people borrowing inside their super fund to buy residential property. The headline everyone ran with was that property in super is dead, don’t bother, doors closed. For a business owner, that was never actually the door that mattered.
Quick Summary
🎥Watch the full breakdown, including the real numbers behind how this plays out. Watch it here. |
Why this is different to the residential rule change
The restriction that made headlines was aimed at investors buying rental properties inside their super fund. What’s covered here is a different strategy entirely: a business owner buying the actual premises their business operates from, using a self-managed super fund, and paying the same rent they were already paying, just to themselves instead of a landlord.
That distinction matters, and it’s exactly why this strategy hasn’t been touched by the recent changes.
The idea in a nutshell
If your business rents its premises, that rent is already one of the bigger fixed costs sitting in your profit and loss, and it’s money building someone else’s equity, not yours. Set it up the right way, and that same payment can start building equity in an asset your own super fund owns instead.
There’s more to why this works than just where the equity lands though, and the video goes through each part of it, including how the numbers behave differently depending on how the purchase is funded.
How it actually gets set up
This is a more involved arrangement than simply buying a property in your own name. There are specific rules about how the fund can hold the property, what it can be used for, and limits on what you can and can’t do with it. Getting this wrong isn’t a minor issue either, it’s exactly the kind of detail worth understanding properly before going anywhere near it, which is why we always recommend getting advice specific to your fund before acting, and it’s laid out step by step in the video.
What it looks like with real numbers
The video walks through a worked example using a business buying its own retail premises, including how the rent, the tax treatment, and the loan repayments interact over time, and what that can mean for overall wealth compared to leaving the same money sitting in an ungeared super fund. The gap between the two is bigger than most people expect.
Who this actually suits
This isn’t a fit for every business owner, and it’s worth knowing upfront whether it’s likely to suit your situation before looking into it further. It comes down to how much is already in your super fund, how long you’re planning to operate from the premises, and getting proper advice before committing to it rather than after.
🎥 Watch the full video here for the complete walkthrough, the worked example, and the rules that matter most if you’re considering this.
Wondering if this could work for your business?
Every fund and every business looks different, and whether this stacks up for you depends entirely on your own numbers. If you’re paying rent on your business premises and you’re not sure whether your super fund could be doing that job instead, contact the team at Cotchy to learn more and find out where you stand.
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