Can you use superannuation to purchase rural land?


This is a pretty complex question, as there are a few variables, the very short answer is, yes – most likely.

You would have to have a Self Managed Super Fund (SMSF), as they are generally able to invest in rural property, as long as it meets the ‘investment strategy’ of the SMSF.

The purchase of the property also needs to meet the sole purpose test, which means it has to purely provide retirement benefits for it’s members.

Being rural land, it is likely to be running a farming business, which means that it could be classified as ‘business real property’. If that is the case, you can also set up a structure where you have the farming business (that you can be involved in) lease the land back from the SMSF, with the intention of making a profit.

To add another layer to this, the SMSF can also borrow money from a financial institution to purchase the property, meaning you don’t have to have the full amount of the land already available in the fund.

So, the general answer is certainly, yes, there are ways that you can do this, and it can be very beneficial, however getting the right tax and financial advice is imperative to ensure that it is something you would consider.

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At Vivid, we can certainly assist you with tax and/or accounting queries around Self Managed Super Funds, and you can make an appointment to see Brad ​right here on our website.  For financial advice we recommend chatting to Bronwyn, Lucy and the team at The Next Step Financial Group in Albury. 

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