Office Requirements for Mortgage Brokers in 2023 & SMSF Tax Benefits
On Friday, we had the pleasure of meeting one of the Top brokers in QLD who has been running his very successful brokerage for over 16 years. There was also another young and upcoming QLD broker who has been in business for less than 3 years. The topic of discussion was how to reduce expenses in the business. After wages and salaries, the second most expensive bill for a business is rent. The young broker said that won't be an issue for her as she will continue to run her business from home. The experienced broker made a great point that even though premises is a huge cost, it played a major role in his success. Even post COVID he prefers to operate out of an office as the benefits outweighed the cost.
Broking is a lonely profession especially if you are a sole trader without your partner or support staff working alongside you. Having a physical office can lend an air of professionalism and can be beneficial for client meetings and to establish trust. It helps you come in and do a focused 8-10 hours of work and then establish a work life balance. When you have an office, you tend to meet Lender BDMs at your office. You can invite other businesses on your street to come in and get to know you better. You become part of the local community of small business owners. It helps in marketing and also getting to know more people and extending your reach. Last but not least, it is an asset your business owns.
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Please speak with your accountant about your individual circumstances as the points below is general advice on the tax advantages of owning an office through an SMSF:
It's crucial to note that there are strict regulations about SMSFs buying properties especially when it comes to purchasing assets from related parties or using the property for personal benefit. Any breach can result in significant penalties. There is definitely benefits in owning an office space as there is both social and financial profits to benefit from.
Finance Broker / Director
1yGreat read Natasha and I agree 100% Culture in an office is something that just can’t seem to be as strong when working from home
Registered Liquidator I Registered Trustee in Bankruptcy I Helping individuals and businesses to solve financial difficulties
1yGreat concise article, Natasha!