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Personal Residential Property Asset Acquisition for your SMSF

The question: Can our SMSF acquire a residential property from us personally? requires a follow-up question: How is the property used?

Before answering these questions, you will require an explanation of Business Real Property (BRP) which is defined under Section 66 of the Superannuation Industry (Supervision) Act 1993 as “any freehold or leasehold interest in real property where the property is used wholly and exclusively in one or more businesses.”

This definition hinges on use, not the type or zoning of the property, and the Australian Taxation Office (ATO) clarifies that even a property that looks ‘residential’ can qualify as BRP if it is genuinely used in the operation of a business. Conversely, a commercial property might not quality as BRP if it is partly used for private purposes.

Therefore, under section 66, a property’s eligibility as BRP depends entirely on its current use in a genuine business operation, not on its appearance or zoning.

If a property satisfies the BRP test, it can be acquired by an SMSF from a related party — provided the transaction occurs at market value.

This allows business owners to transfer premises used in their business into their SMSF, helping free up capital while retaining operational control through a lease arrangement.

However, if the property is not wholly and exclusively used in a business, section 66 prohibits the transfer, and a SMSF might risk breaching the Superannuation Industry (Supervision) Act 1993.

Section 66 Exemption - Examples

The exemption under Section 66 is tested at the time of acquisition. If a property is used, for example, by a doctor, accountant or dentist, 100 per cent of the time for their business with no residential purpose, then the property would be classified as BRP and may be acquired from a related party to a SMSF.

However, if, for example, a property is a working farm that has a farmhouse used residentially, then the farmhouse portion could be considered incidental, and the property may also be acquired from a related party to a SMSF.

Furthermore, a motel that has a manager’s quarters within the property could also be considered incidental, and the property may also be acquired from a related party to a SMSF.

Next Steps

If you are considering a property transaction involving a SMSF and a related party, it is essential to assess the property's current and intended use — not just its type or zoning. Would you like help evaluating a specific property scenario? Ask us at YML Super Solutions to look more closely at the exact details of a property’s use for your SMSF strategy.

How can YML help?

Talk to our YML Super Solutions Team today to see how YML Group can assist you with your SMSF. For more information, view our website and contact us on (02) 8383 4444 or by using our Contact Us page on our website.

Do you need help buying your perfect property?

What is a Buyer’s Agent?

A buyer’s agent, also known as a buyer’s advocate, is a licensed processional who represents the interests of property buyers. A buyer’s agent works exclusively with you, the purchaser, to help you identify, negotiate for and purchase property that fulfils your property-buying criteria.

Unlike a traditional real estate agent, a buyer’s agent does not work on behalf of the vendor (seller) of a property. S/he ensures that their clients are provided with a bespoke property search-and-find service.

Why use a Buyer’s Agent?

A buyer’s agent will work with you to ascertain your property-buying objectives, such as location, property type, budget, growth vs yield, investment vs owner-occupancy. Once a brief is established, a buyer’s agent will search for properties that match your brief, including any off-market options that are not publicly advertised.

Buyer’s agents have networks of contacts in the real estate industry. Their insights and research access can provide you with local market information, trends and risks, giving you an advantage in a competitive market. Operating across Australia, a buyer’s agent can also help you invest in property beyond your local area.

Advocating for you during the negotiation process, coordinating due diligence, managing inspections and reviewing documentation, a buyer’s agent provides their expertise and experience whilst saving you time and energy.

A buyer’s advocate is always in your corner until you have secured a property that aligns with your personal, business, lifestyle and/or investment needs.

What is the current state of the Australian Residential Housing Market?

Generally, in Australia today, residential property values continue to rise at a moderate pace, with the national dwelling value growth rising towards 5 per cent over recent months.

Property analysts had forecast moderate national growth throughout 2025, rather than a fast-rising boom, however supply remains constrained in many Australian regions which supports values and makes for a more competitive market for buyers.

Next Steps

YML Group can partner you with our trusted Property Buyer’s Agent associate to ensure a convenient, efficient and tailored approach to help you in your property search.

When you least expect it, our affiliated Property Buyer’s Agent could present to and secure for you the ideal property that aptly fits within your wealth-building strategy.

How can YML help?

Talk to our YML Chartered Accountants today to see how YML Group can assist you in your property search. For more information, view our website and contact us on (02) 8383 4400 or by using our Contact Us page on our website.

How YML Offshore Co-sourcing can work for your Business

YML Group offers offshoring and co-sourcing solutions to help Australian businesses reduce operational costs and scale efficiently without compromising quality or control. YML provides skilled offshore professionals who work as part of your company’s team, managed and supported by YML’s Australian systems and infrastructure with full accountability.

Specifically, co-sourcing is a hybrid model, a collaborative strategy, combining your existing in-house resources with an external service provider to manage certain functions. This mutual partnership enables your business to focus on its core operations while delegating skilled- and process-based tasks to trained offshore specialists.

Some examples of the types of specialists available to assist your business are:

Offshore Property Manager

An offshore Property Manager operates as an extension of a real estate or property management business in Australia.

Their responsibilities might include calling tenants regarding rent arrears, lease renewals, inspections and maintenance issues, as well as managing property databases and data entry in your property management software.

This setup enables your Australian property managers to focus on client relationships and business growth while an offshore Property Manager handles the day-to-day coordination and communication tasks.

Offshore Quality Engineer

An offshore Engineer supports relevant Australian businesses by ensuring consistent quality assurance processes and documentation.

Their responsibilities might include conducting remote compliance checks and process audits, providing data analysis, and using digital tools to monitor performance.

Australian businesses gain collaborative access to technical expertise while maintaining quality standards for their clients.

Offshore Administrative Support

An offshore administrative professional handles general office, finance, and customer service functions for businesses in Australia.

Their key responsibilities might include managing email correspondence, data entry and document preparation, processing invoices, preparing quotes and reconciliations, all under local, onshore supervision. Administrative staff can also specifically support HR and payroll functions.

Your Australian administrative staff are freed up to focus on clients and strategy due to improved efficiency from the streamlining of back-office tasks.  

Next Steps

YML Group can help you gain access to skilled professionals who will integrate seamlessly with your business’s operations, as part of your own team and in alignment with your business, delivering productivity and cost savings.

Our offshore co-sourcing service offers you operational control and is ideal for growing Australian businesses.

How can YML help?

Talk to our YML Business Services Team today to see how YML Group can assist you with offshoring and co-sourcing solutions. For more information, view our website and contact us on (02) 8383 4455 or by using our Contact Us page on our website.

Business Owners – Are you paying the Superannuation Guarantee to your Contractors?

If you are an Australian business owner and you are trying to work out if you must pay superannuation guarantee (SG) contributions to independent contractors, then firstly you need to know their status under the Superannuation Guarantee (Administration) Act 1992.

It is important to know that having contractors with an ABN who issue your company with invoices does not automatically remove your SG obligation. If a contractor is not an employee of your organisation, then you will need to consider if they are deemed to have ‘common law employee’ status for the purpose of paying SG contributions.

SG contributions are generally payable to a contractor who:

SG contributions are generally not payable to a contractor who:

If a contractor is running their own business, supplying their own staff, tools, materials and bearing business risks, the obligation to pay SG may not apply.

However, business owners who get it wrong and fail to pay SG are at risk of:

To get it right as a business owner, you will need to:

Next Steps

Keep your business running smoothly and reach out to YML Business Services TODAY for our bookkeeping services. We help you stay on top of the rules surrounding Superannuation Guarantee (SG) and independent contractors. Our bookkeeping team is here to support you with accurate and timely management of your SG payments.

How can YML help?

Talk to our YML Business Services Team today to see how YML Group can assist you with your SG obligations. For more information, view our website and contact us on (02) 8383 4455 or by using our Contact Us page on our website.

NEW Work Test for Retirees – What it means for you

Australia’s ‘work test’ must be met by Australians who have reached 67 years of age and want to make voluntary superannuation contributions for which they will claim a tax deduction.

A new rule states that the ‘work test’ no longer must be met by anyone under 75 who wishes to make voluntary contributions to their superannuation accounts, unless they want to claim a tax deduction.

What is the Work Test?

The ‘work test’ requires that anyone aged 67 to 74 years of age must work at least 40 hours within 30 consecutive days in a financial year to be eligible to make voluntary superannuation contributions, such contributions payable at any time within the same financial year as the work is completed.

This ‘work test’ was removed for non-concessional (after tax), salary sacrifice and voluntary employer contributions for people aged 67 to 74 years of age. However, the ‘work test’ remains if you want to claim a tax deduction for personal deductible contributions.

Being ‘gainfully employed’ forms part of the criteria to meet the ‘work test’. Gainful employment means receiving gain or reward and may include remuneration such as salary, wages, directors’ fees, business income, bonuses, commissions, fees or gratuities which have been obtained in return for personal exertion.

Unpaid work does not qualify as being ‘gainfully employed’.

The term ‘gainfully employed’ once unfairly excluded company directors and officeholders in non-traditional employment roles, but a new tax law draft restores eligibility meaning that directors and officeholders may claim a tax deduction on voluntary superannuation contributions if they meet the 40-hour ‘work test’ (or exemption – see Note). This draft change is already in effect.

Any director of a company (including non-executive directors who do not engage in the day-to-day management of an organisation) is specifically included as an employee for Superannuation Industry (Supervision) Act 1993 (‘SIS Act’) purposes, provided that a director is entitled to payment for their work as a company director.

Work may be undertaken offshore, although residency matters may arise.

Note: There is a ‘work test’ exemption, applicable only once per individual and then may not be used again. It is applied for those people recently retired with superannuation total balances at the previous 30 June of under $300,000.

How can YML help?

Talk to our YML Super Solutions Team today to see how YML Group can assist you with your SMSF. For more information, view our website and contact us on (02) 8383 4444 or by using our Contact Us page on our website.

What you MUST know about selling your Main Residence

What you need to know about Capital Gains Tax (CGT) when selling your Home

Capital Gains Tax (CGT) implications when selling your home (‘main residence’) must be addressed because unless you qualify for the main residence exemption, CGT may be triggered. CGT applies when you sell an asset for more than you paid for it. Any gain is added to your assessable income and taxed at your marginal rate.

The full main residence exemption, however, allows you to disregard any capital gain (or loss) when selling your home if the following criteria apply:

If you sell vacant land, intending to build on it but not yet having done so, the main residence exemption generally is not available.

Partial CGT Exemption if you rented out your Home before selling

If you rented out your home, the Australian Taxation Office (ATO) allows you to treat the property as your main residence for up to six (6) years whilst it is rented out, so long as you have not nominated another property as your main residence during this time.

Renting out your home means full CGT exemption will not apply. You will need to apportion any capital gain and may be eligible for a partial CGT exemption.

Main Residence Exemption if you leave your Home vacant before selling

Leaving your home vacant, so long as you have not nominated another property as your main residence, allows you to treat the property as your main residence indefinitely, thus qualifying for the main residence exemption, assuming all relevant criteria are met.

Can I claim the Main Residence Exemption if I’m residing overseas at the time of selling?

If you are a foreign resident for taxation purposes at the time of sale of your home, generally, you may not claim the main residence exemption, even it the property was your home when you were living in Australia prior to living overseas.

If you have been a foreign resident for a continuous six (6) years or less during your Australian property ownership period, and one of certain qualifying life events has occurred (such as, for example, a terminal illness or a death in your immediate family, or a formally-agreed relationship termination), then you may satisfy the life event test which may result in your qualifying for the main residence exemption.

Note, foreign residents are subject to Foreign Resident Capital Gains Withholding (FRCGW), a 15% withholding tax on the sale price of their Australian property, adjusted accordingly when you have lodged your annual tax return.

The ‘Interest-deductibility Test’ and how it affects the Main Residence Exemption

If any part of your home is or was used to produce an income (via rental or running a business) and you would therefore be eligible to deduct interest on your home loan, then you may not qualify for the full main residence exemption.

The part of your home used exclusively to produce an income may allow you to claim a proportionate interest deduction.

However, if the home loan used to purchase the property is not solely in the owner’s name, interest deductibility may be denied unless you, the owner, can prove that you are legally responsible for the home loan, and the property or part thereof was used to produce an income (via rental or running a business).

What do I need to report to the ATO in my annual Tax Return?

Whether you expect a full or partial main residence exemption, you have reporting obligations, including:

Next Steps

Contact YML Chartered Accountants for tailored advice about selling your home (‘main residence’), especially if selling your home involves rental periods, foreign residency, or shared ownership.

How can YML help?

Talk to our YML Chartered Accountants today to see how YML Group can assist you with your CGT obligations. For more information, view our website and contact us on (02) 8383 4400 or by using our Contact Us page on our website.

YML Doubles Down on AI: Investing in the Future of Intelligent Innovation

YML is proud to announce its strategic investment and commitment to expanding its Artificial Intelligence (AI) capabilities through the launch of a dedicated AI division. This bold move responds to the accelerated growth of AI technology and focuses on rapid development cycles to deliver practical, high-impact solutions to everyday business challenges.

Building on our proven success in Robotic Process Automation (RPA), this new chapter marks a significant step forward in our mission to provide intelligent, transformative solutions for clients across industries.

A Natural Evolution from RPA to AI

YML’s success in RPA has already shown our ability to streamline repetitive processes, improve productivity, and reduce operational costs. Now, YML AI will take this further — applying breakthroughs in generative AI, natural language processing, and data analytics to solve more complex and dynamic problems.

This evolution allows us to offer a complete spectrum of intelligent automation, from process optimisation to predictive decision-making.

Leadership Driving Innovation

To lead this initiative, we are excited to welcome Avi Sharabi, a senior technology executive with over three decades of experience in cutting-edge technologies. Avi has established and led the Deloitte Sydney Analytics, and later on led the KPMG Sydney data team in his 12 year tenure as a Senior Partner. During these times and afterwards, Avi drove innovation in both corporate as well as startup environment. in his role as a Lead Partner for over 12 years. innovation at both corporate and startup levels.

His AI journey dates back to 1995, when fresh out of Uni, he developed a Machine Learning (ML) solution enabling GE Nuclear Energy to address a heating reactor challenge. Today, at YML AI , Avi is building and leading a team of AI professionals dedicated to delivering measurable results for our clients.

Solving Real Problems, Fast

At the core of YML AI is rapid prototyping — creating and testing solutions quickly so clients can see value early in the process. Based on our experience and initial conversations with business leaders we are prioritising high-return applications of AI in areas such as:

Investing in the Future

To ensure the success of YML AI, we made significant investments in:

Your Challenges, Our Next Breakthrough

Our AI vision is fuelled by real-world challenges. We invite our clients and partners to share with us the challenges they face - whether in accounting, logistics, marketing, sales, or beyond. Jointly, we can design solutions that deliver immediate value and long-term growth.

How can YML help?

For more information, please contact:

Avi Sharabi
CEO - YML AI
M: 0410 348 297 
E: Avi.Sharabi@ymlgroup.com.au 
W: www.ymlgroup.com.au

Proposed New Taxation Rule – Division 296 – to affect Individuals with over $3 million in Superannuation

What is Division 296?

Yet to be introduced as law into the Income Tax Assessment Act 1997 (Cth), Division 296 is a proposed taxation rule imposing an additional 15% tax on specified earnings of an individual’s Total Superannuation Balance (TSB). The proposed Bill will affect those superannuation members with a TSB of more than $3 million, generally, but not limited to, affecting high net-worth individuals in Australia.

From 1 July 2025, fund earnings on the portion of TSB above $3 million will be taxed under Division 296. As Division 296 is in addition to the current 15% concessional tax rate on fund earnings, fund earnings in excess (on the portion above $3 million TSB) may effectively incur a 30% total tax rate.

The Australian government’s aims of this proposed taxation rule are equity, as large superannuation balances currently receive generous taxation concessions, and revenue. It is expected that fewer than 0.5% of Australians are likely to be impacted, but will you be one of those affected?

Will Division 296 affect you and, if so, when?

Firstly, determine what your Total Superannuation Balance (TSB) will be at the end of the year ending 30 June 2026 as this will decide if you are liable to have taxable fund earnings under proposed Division 296.

Those individuals with aggregate TSB across all their superannuation accounts above $3 million will be impacted. Note, individuals in defined benefit schemes, employer-sponsored pensions, will be allowed to defer Division 296 liability until retirement (interest applicable annually).

The ATO will assess your eligibility to pay Division 296 tax when you lodge your tax return for the financial year. If you are liable to pay, a notice will be issued by the ATO. You may be

able to pay with a release of money from your superannuation fund.

How Division 296 will be calculated?

If your aggregate TSB across all your superannuation accounts will be above $3 million on 30 June 2026, then you will have reached the proposed threshold for the application of Division 296.

Following is the formula for determining the amount of tax for which you could be liable:

Earnings on your TSB will be calculated as:

Earnings = (Closing Balance – Opening Balance) – Net Contributions (consider both Contributions and Withdrawals)

The proportion above the $3 million threshold will be calculated as:

Proportion = (Closing Balance - $3 million) / Closing Balance

And the taxable earnings will be calculated as:

Taxable Earnings = Earnings x Proportion

Finally, Tax will be calculated as:

Tax = 15% x Taxable Earnings

Note, losses may be carried forward to offset future Division 296 liabilities but may not be carried backward.

What to do NOW – NEXT STEPS

Many high net-worth individuals may want to consider planning strategies to reduce exposure to or mitigate the impact of Division 296, however consider deferring reactive restructuring at the risk of reducing long-term superannuation benefits.

Contact YML Chartered Accountants TODAY about strategic planning to manage projected balances of your superannuation accounts in anticipation of Division 296 being brought into law before financial year end 2026.

How can YML help?


Talk to our YML Super Solutions Team today to see how YML Group can assist you with your SMSF. For more information, view our website and contact us on (02) 8383 4444 or by using our Contact Us page on our website.

Business Insurance: What You May Be Overlooking

Here are five types of business insurance worth having on your radar, that could provide more comprehensive cover:

      1. Cyber Liability Insurance

Cyber-attacks aren’t just a big business problem. In fact, small and medium-sized businesses are being hit the hardest. According to the Australian Signals Directorate, over 87,000 cybercrime reports were made in 2024, with small businesses making up a large portion of the victims. The average cost of a single cyber incident for a small business? More than $49,000.

Whether you’re storing customer information on a laptop or in the cloud, using an EFTPOS machine to collect payments, sending emails to vendors, or simply updating your website, you could be vulnerable to a cyber-attack. Cyber Liability insurance can cover the cost of responding to a data breach, recovering compromised systems, and notifying affected customers. It also helps with crisis management and legal expenses if client data is exposed or stolen.

      2. IT Liability insurance

Tech professionals operate in high-stakes environments. One coding error, outage, or lost file can lead to serious consequences for your clients, and potentially legal action for you.

IT Liability insurance is designed with Information Technology professionals in mind. It combines the protection of Professional Indemnity insurance and Public Liability insurance to provide cover if something were to go wrong with the IT advice, services or even products you provide to your clients.

      3. Management Liability insurance

Being at the helm of a business means taking on a fair share of risk and legal responsibilities, especially when you're managing staff, finances or company decisions. Even with the best intentions, things can go wrong. One internal complaint or regulatory investigation could trigger a costly legal process.

Management Liability insurance is designed to protect business owners and company directors from legal claims tied to the management of the business. That may include incidents like unfair dismissal, discrimination or harassment claims, and even allegations of financial mismanagement.

      4. Tax Audit insurance

Even if your books are in perfect order, an audit from the ATO can still land on your desk. And when it does, responding properly takes time, expertise, and money.

Tax Audit insurance can be included in your Business Insurance Pack. It helps cover the professional fees that come with handling an audit. That includes costs for hiring an accountant, tax agent or other related professionals. This type of cover is useful for any business that wants to meet ATO requirements without taking a significant financial hit for it.

      5. Statutory Liability insurance

Regulations are a part of doing business in Australia. Whether it's workplace safety, employee rights, or industry-specific rules, it's important to stay up-to-date and compliant. But mistakes can happen.

Statutory Liability insurance can also be added to your Business Insurance Pack.  It covers investigative costs and penalties that come from unintentional breaches of government regulations. This could include breaches in legislation, or missed steps in licensing obligations.

This policy is especially useful for businesses in heavily regulated industries. With this cover in place, you're not left footing the bill if an honest mistake turns into a costly legal problem.

Get the cover you need, without the hassle

If your current cover is limited to just Public Liability and Professional Indemnity insurance, now’s a great time to explore your options. BizCover helps you compare multiple insurance options from leading Australian insurers, choose a policy that fits your business needs, and buy your cover in minutes.

No forms. No phone calls. Just easy, affordable cover trusted by over 260,000 small businesses across Australia.

Ready to protect your business properly? Head to BizCover and sort it all out in just a few clicks.

 

This information is general only and does not take into account your objectives, financial situation or needs. It should not be relied upon as advice. As with any insurance, cover will be subject to the terms, conditions and exclusions contained in the policy wording.

© 2025 BizCover Pty Limited, all rights reserved. ABN 68 127 707 975; AFSL 501769

How can YML help?

Talk to our trusted advisors today to see how YML Group can assist you with your insurance needs through BizCover. For more information, view our website and contact us on (02) 8383 4400 or by using our Contact Us page on our website.

Reminder: Additional Tax on Concessional Superannuation Contributions

What is Division 293?

First introduced during the 2017/18 financial year, Division 293 is a taxation rule specifying a 15% tax rate on concessional superannuation contributions, generally, but not limited to, affecting high-income earners in Australia.

Division 293 reduces the tax concession on superannuation contributions for people with combined income and concessional contributions exceeding a threshold of $250,000 in a financial year. The aim of this rule is fairer treatment of tax on concessional contributions, meaning that people with higher incomes do not benefit disproportionately.

Will Division 293 affect you?

Firstly, it’s important to know what counts as income and contributions which is what the ATO will look at to determine if you are liable to pay Division 293 tax on your concessional superannuation contributions.

Income includes:

Concessional (before-tax) contributions include:

If your total combined income and concessional contributions exceed $250,000 in a financial year, you have reached the specified threshold for the application of Division 293.

Division 293 tax is calculated at 15% on whichever is the lesser of:

The ATO will assess your eligibility to pay Division 293 tax when you lodge your tax return for the financial year. If you are liable to pay, a notice will be issued by the ATO. You may be able to pay with a release of money from your superannuation fund.

Next Steps

Contact YML Chartered Accountants about bringing forward deductions, deferring bonuses, utilising non-concessional (after-tax) contributions and using a family tax, among other ways to manage the timing of your income.

How can YML help?

Talk to our YML Chartered Accountants today to see how YML Group can assist you with your ATO Division 293 obligations. For more information, view our website and contact us on (02) 8383 4400 or by using our Contact Us page on our website.