If your SMSF provides hosting services, such as Aribnb, the SMSF property needs to be fully furnished in order to get a better income.
You can purchase the following items immediately after the settlement of the SMSF property:
– Washing Machine
– Reverse cycle aircondition
– New light fittings
– Sofa Bed
– Bath mats
– Cutleries and utensils (knives and chopping board)
– Iron and Iron Board
– Vacuum cleaner
– Decorations (wall units and decorations plus picture frame/painting on the wall)
– Advertising costs
– Other (services such as Electrician for air-condition and new light fitting and painter to have the apartment freshly painted)
When you start the hosting services, you also can purchase the following regularly:
– Toilet paper
– Miniature soap, shampoo and conditioner
– Dish washing detergent
– Clothes washing detergent
– Bathroom and kitchen cleaning detergent
– Services for cleaning the property
– Other (i.e. welcome drinks and nibblies – this is part of meet and greet the guest in order to get a great review)
Please note the followings:
– some of the expenses are in capital nature and you can not write them off and only can claim depreciation expenses based on their effective lives.
– all items to be stored away from trustee / members private residence – including consumables.
– be careful of maintenance work when premises not available for lease (ie. You block out availability on Air BNB etc) as this can make an expense into capital.
– maintain a list of consumable items, and the rooms they are in – and keep track of replenishment. Ensure cleaners provide invoice, and have an ABN (SMSF needs to withhold if no ABN provided).
-keep track of stock of consumables.
Your SMSF will pass any ATO review easier if you can have a good recording keeping system.