The volatility of the share market has left many of us with not-so-super feelings about our superannuation. As a small business owner, however, there are some easy steps you can take to gain control of your Super – and with knock on benefits for your business too.
Let’s take a look at the example of Ben, whose business operated out of a small factory unit. Ben approached his accountants at Abby Practice, who structured a very effective solution whereby Ben was able to take control of both his Super investment and also his business premises. This is how he did it:
– Abby Practice set up a DIY Super Fund for Ben and his wife.
– Ben’s Financial Planner arranged life insurance cover for both Ben and his wife within the new Fund.
– Ben and his wife’s Super account balances were rolled into the new DIY Fund.
– The factory unit was purchased in the name of the Fund and the Fund, under the new rules, borrowed the balance of the purchase money to finalise the purchase.
– Ben’s business entered into a lease over the new premises and began to pay rent to the new Fund.
– Ben and his wife paid their normal contributions to the new Fund.
– The Fund started to repay the money borrowed to purchase the factory unit, as the fund has both the rental income and Ben and Lily’s contributions to repay the debt. This means the debt is repaid more quickly than normal.
– Ben and Lily were really happy with this strategy as it secured the business premises into the future and they also gained control of their own Superannuation Funds.
It need not be an onerous administrative burden to establish and administer a Super Fund. We have done so for many clients at low cost.
Abby Practice is holding a free seminar on Self Managed Superannuation Funds for Business Owners on Tuesday 11 October from 6-8pm at the Hornsby RSL Club. Click here to register or email gail@abbypractice.com.au
Drinks and Canapes will be provided but there are limited seats available, so be quick!
