SMSF Property Tax Benefits: 5 Key Offsets That Save You Money

One of the biggest advantages of owning property inside your SMSF isn’t just growth — it’s tax. Unlike industry funds, SMSFs let you access powerful property tax offsets that can put thousands back in your pocket every year.

1. Interest Deductions

If your SMSF borrows to buy property, the interest payments are tax-deductible. This reduces taxable income within the fund, leaving more money to compound.

2. Property Expenses

Your SMSF can claim deductions for a wide range of property-related expenses:

• Council rates

• Property management fees

• Repairs and maintenance

• Insurance premiums

Every deduction lowers your fund’s tax liability.

3. Depreciation Schedules

SMSFs can claim depreciation on property fixtures and fittings. This is a paper-based deduction — no money leaves the fund, but the tax bill shrinks.

4. Rental Income Concessions

Rental income inside an SMSF is taxed at just 15%, far lower than personal marginal tax rates. Once the fund moves into retirement (pension phase), that tax can drop to 0%.

5. Capital Gains Tax Discounts

Hold the property for more than 12 months, and your SMSF receives a one-third CGT discount. This can significantly reduce tax when you sell.

Why Industry Super Doesn’t Deliver These Benefits

In industry funds, you don’t own property directly — you own units in a pooled trust. That means you don’t get the tax offsets, depreciation, or direct control.

Conclusion

The right SMSF property strategy means more of your returns stay with you — not with the tax office.

👉 Want to see how much tax you could save through an SMSF and how much you can borrow?

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