Question of the week – can my SMSF part-own my farm?

SMSF technical expert and columnist for The Australian newspaper
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Question: We are considering purchasing a farm on which we would live (residential area less than two hectares) and would require 10% of the purchase price to be funded by our SMSF and 90% by ourselves (part cash and part debt). We would pay rent to our SMSF at market rates for the 10% of the land. Would this be allowable? We will be running a primary production business as recognised by the ATO.

Answer: Thanks for the question.

As you're running a genuine business then it would seem that the super fund would own business real property, which it can lease to a related party.

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