Sunshine Coast Region, Queensland
Accountant in Buderim
Your business premises owned by your super fund, and the rules that come with it
SMSF administration, property in super guidance and business tax for Buderim business owners and fund trustees, from a CPA practice and SMSF Specialist.
Buderim sits on a mountain about 180 metres high, 7 km south-west of Maroochydore, and its working history runs from the first cedar cut by Tom Petrie's party in 1862 to the coffee plantations that made it Queensland's largest coffee-growing area by 1911. In the 2021 Census the suburb had 31,430 residents with a median age of 46. Emma, the Director at Lomandra Accounting, specialises in Self-Managed Super Funds (SMSFs).
Buderim in brief
From sugar and ginger to heritage cottages.
Joseph Dixon grew sugarcane on the mountain and built his own sugar mill around 1876. A ginger processing factory opened in 1942 and grew into the largest of its kind in the Southern Hemisphere before moving near Yandina in 1980. Buderim Mountain State School opened on 5 July 1875, and Pioneer Cottage, Canambie Homestead and Buderim House are heritage-listed.
Three SMSF property questions
The fund buying your business premises
Why it happens
A business owner wants their SMSF to own the office, shop or workshop the business operates from, and to lease it back to the business.
Why it matters
An SMSF generally can't buy assets from a related party, but business real property is an exception, if it is bought at market value. Business real property is land and buildings used wholly and exclusively in a business. Leasing it to a related party, such as your own business, doesn't make it an in-house asset, but the lease must be on an arm's length basis at market rent.
How we help
Lomandra Accounting offers property in super guidance with loan compliance checks and trustee education. Get an independent market valuation and a written lease before the fund buys.
Other assets and the 5% limit
Why it happens
A fund lends to, invests in or leases an asset other than business real property to a related party.
Why it matters
In-house assets can't make up more than 5% of the market value of the fund's total assets. If they do at the end of the financial year, the trustee must prepare a written plan to bring them back to 5% or below.
How we help
We also work closely with auditors and handle the day-to-day compliance details, from contribution and pension record-keeping to reviewing fund expenses and investment documentation.
Borrowing to buy, and the annual audit
Why it happens
A fund borrows to buy a property, and every year the fund's accounts go to an auditor.
Why it matters
Under a limited recourse borrowing arrangement, the property is held in a holding trust until the loan is repaid, and it must be identified when the arrangement starts. The fund's own money can pay for improvements, but improvements can't turn it into a different asset; borrowing to build a house on vacant land doesn't count as acquiring a single asset. Each year the trustee must appoint an approved, independent auditor at least 45 days before the SMSF annual return is due, even if nothing happened in the fund that year, and the audit must be finished before the return is lodged.
How we help
Lomandra Accounting offers annual financials and SMSF tax returns with independent audit coordination. Answer the auditor's questions within 14 days.
Frequently asked questions
Can my Buderim business lease its premises from my SMSF?
Yes, if the property is business real property and the lease is at arm's length and at market rent. The fund can also buy it from you as a related party, at market value.
What is the in-house asset limit for an SMSF?
5% of the market value of the fund's total assets. Business real property leased to a related party doesn't count towards it.
When does my SMSF auditor need to be appointed?
At least 45 days before the fund's annual return is due, every year.
Where to next
Have a question?
Before the fund buys
Expert SMSF advice for secure retirement.
Lomandra Accounting is a CPA Practice, registered with the Tax Practitioners Board and an SMSF Specialist. Emma, the Director, is a Certified Practicing Accountant (CPA) with extensive experience in commercial business management, and specialises in Self-Managed Super Funds (SMSFs).
- 07 5234 9201
- admin@lomandraa.com.au
- Sunshine Coast, QLD
- Monday to Friday, 9am to 4:30pm