The transfer of farmland into a self-managed superannuation fund

Published: 20 Sep 2018

Key points

  • Superannuation is a tax-effective way to save for retirement, however it is a highly regulated and complex system.
  • A self-managed superannuation fund (SMSF) is an attractive and popular structure used as part of a financial strategy to obtain financial security.
  • Owning farmland in a SMSF may be a good way to create more wealth, but the limitations of the structure need to be balanced against the benefits.

Topics include

  • Superannuation basics
  • Types of superannuation contributions
  • Key benefits of a SMSF holding farmland
  • Case study of a retiring farming family
  • Key disadvantages and risks of a self managed super fund holding farmland

Frequently asked questions

At what age can I access my superannuation?

Date of BirthAge to access superannuation
Before 1 July 196055
From 1 July 1960 until 30 June 196156
From 1 July 1961 until 30 June 196257
From 1 July 1962 until 30 June 196358
From 1 July 1963 until 30 June 196459
On or after 1 July 196460

Does a SMSF operate like a retail or industry superannuation fund except that I have more control?

A SMSF operates exactly as any other superannuation fund, but you have 100% control over it. That is, as the trustee you are responsible for how the fund operates, how the money is invested, types of investments, etc.

Does a SMSF require an investment strategy?

Yes. Legislation requires SMSFs to have an investment strategy. There is no prescribed format for an investment strategy, and strategies will vary from fund to fund based on, but not limited to, the following:

  • age of members;
  • the composition of the fund’s investments;
  • future contributions to the fund;
  • risk of investments;
  • cash flow needs; and
  • liquidity.

The investment strategy must be in writing and should be reviewed at least annually, or when investment opportunities available to the fund are inconsistent with the fund’s investment strategy.

Link to this publication

Use https://grdc.com.au/the-transfer-of-farmland-into-a-self-managed-superannuation-fund to ensure your link remains current and up-to-date!

Region: National