Industry Focus

HEALTHCARE Unit trusts and your self-managed super fund Unit trusts can be a profitable investment when they are structured to maximise flexibility and minimise tax payments WORDS: HEATHER BECKINGSALE Have you considered using, or do you use, your self-managed super fund (SMSF) as an investor in a unit trust? The law governing unit trusts and investments in unit trusts by SMSFs is currently under review, so care needs to be taken when choosing this type of investment structure. The scenario In the current economic environment, it is not uncommon for health professionals to consider long-term property investments, including the purchase of their medical practice premises. 6 Industry Focus As we are all aware, there are many ways to invest via direct purchase, corporate shareholding, family trusts, SMSFs, managed schemes, unit trusts and the like. Which structure is best? This depends on each person's circumstances. Of course, legal, accounting and financial advice is required when making this decision. Historically, unit trusts have been a good option when multiple health professionals wish to invest together in a common enterprise or portfolio of assets. Unit trusts can, if established correctly, provide flexibility and be tailored to meet the needs of the various unitholders. A common scenario is when a group of specialists wish to buy commercial premises from which to operate their practice(s), with the aim of securing tenure and providing an income stream through rental on retirement that is separate from their medical practice. These specialists may choose to purchase the commercial property using a unit trust. Each specialist will acquire units in the trust in the manner that best suits their situation (for example, by using their own private company, family trust or SMSF to purchase the units). The unit trust then constitutes the 'vehicle' through which specialists

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