What are the tax benefits of SMSF property?

  • Lower Tax Rate: Rental income and capital gains are taxed at 15% in the accumulation phase.
  • Depreciation Deductions: Reduce taxable income through capital works and new plant & equipment depreciation.
  • Tax-Free Retirement Benefits: In the pension phase, rental income and capital gains can be tax-free if the SMSF is fully in pension mode.
  • Capital Gains Tax (CGT) Discount: If sold after 12 months, CGT is reduced to 10% in the accumulation phase.
  • CGT Exemption: If the property is sold while the SMSF is fully in the pension phase, any capital gains may be completely tax-free.