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Residing in House of SMSF owned farm

Discussion in 'Superannuation, SMSF & Personal Insurance' started by Zad, 6th May, 2016.

  1. Zad

    Zad New Member

    6th May, 2016
    Hi. We are looking at purchasing a farm around Gympie with our SMSF (40 - 100 acres or more). The aim will be to operate a farming business (cultivating and selling organic food) which will lease the property through the SMSF.

    We currently live in Brisbane and would set-up the farm (intensive farming via permaculture principles) to start generating an income hopefully within a couple of years.

    We would still need to work in Brisbane for the period leading up to the farm generating a decent income though would like to be able to stay in the house while at the farm for practical reasons. My understanding is that provided the domestic area is less than 2 hectares and the predominant purpose overall is the business then that's ok. Does that sound right?

    Also does anyone know of any financial advisors around Brisbane who would be knowledgeable in this area.

    Also just found this on Commbank website which may help our situation:
    Farm with two private dwellings
    Sean and Danielle lease their dairy farm from their DIY super fund, the S&D SMSF. They live on the property. They have decided the farm is getting too much for them to manage so have subleased part of their property to an unrelated party. A second house has been built on the property to accommodate the new farmer.
    The total area of land used for private or domestic purposes is still under two hectares and not the predominant use of the land. Therefore the property will be considered to be used wholly and exclusively in a primary production business under the definition of business real property.

    Would welcome any feedback. Regards
    Last edited by a moderator: 6th May, 2016
  2. Terryw

    Terryw Well-Known Member

    9th Jun, 2006
    Yes this should be possible.

    From memory ,see smsfr2009/1