Airbnb rentals in my SMSF property

It is also important to consider if the SMSF Airbnb activities constitute a business and if so, check the trust deed to ensure it is allowed to carry on a business.

Purchasing a property by my SMSF for Airbnb rental purposes

Airbnb property may be regarded as business real property under certain circumstances.

When the property is used in this way by a member it can be purchased from a member and used by a SMSF to undertake rental activities using an Airbnb platform. Given the complexity of the superannuation legislation, and severe outcome if the SMSF trustee gets it wrong, it is always precautionary to obtain an Australian Taxation Office (ATO) private ruling to ensure the member is carrying on a business to avoid legal and compliance issues.

Of course, the SMSF must also consider other compliance issues such as:

• The sole purpose test
• Arms-length transactions including purchasing the property at market value
• Transparency of the rental operations
• Evidence of rental income and expenses for audit purposes.

An SMSF trustee is prohibited from acquiring residential property from a member or related party. The one exception being residential property which is business real property as defined by the superannuation legislation. Business real property includes land and buildings used wholly and exclusively in one or more businesses.