How a Dental Practice Owner Restructured a AUD 2.4M Commercial Property into an SMSF and Improved Cash Flow, Tax Efficiency & Borrowing Power
Client Overview
An established dental practice owner held their commercial premises within their trading company structure. While the business was performing strongly, the existing setup limited tax efficiency, borrowing flexibility, and long-term wealth planning opportunities.
The client wanted to restructure the ownership of the property to create a more effective business and retirement strategy.
Existing Position
| Details | Position |
| Property Value | AUD 2.4 million |
| Existing Debt | AUD 1.4 million |
| Interest Rate | 7.5% |
| Ownership Structure | Trading Company |
| Property Use | Owner-occupied dental premises |
Strategy Implemented
The commercial property was transferred from the trading company into the client’s Self-Managed Super Fund (SMSF) under a compliant lending structure.
The strategy included:
✔ SMSF borrowing structure
✔ Refinance of existing debt
✔ Transfer at market value
✔ Commercial lease between the business and SMSF
✔ Separation of business and investment assets
The SMSF secured funding of AUD 1.4 million at a reduced rate of 7.0%.
Key Outcomes
Improved Tax Efficiency
- Rental income moved into a concessionally taxed super environment
- Enhanced long-term retirement wealth creation
- Potential long-term capital gains tax advantages
Reduced Interest Costs
| Before | After |
| 7.5% Interest Rate | 7.0% Interest Rate |
| AUD 105,000 Annual Interest | AUD 98,000 Annual Interest |
Estimated Annual Saving: AUD 7,000
Stronger Business Position
- Improved balance sheet strength
- Increased borrowing flexibility
- Reduced business gearing
- Better asset protection
Result
The restructure delivered:
- Lower finance costs
- Improved tax efficiency
- Enhanced borrowing capacity
- Stronger asset protection
- Long-term retirement wealth creation
Disclaimer
This case study is for general informational purposes only and does not constitute financial, taxation, legal, or lending advice. Professional advice should be obtained before implementing any SMSF or commercial property strategy.
