Has anyone here looked into buying domain names using a self-managed super fund?

I've tried searching, but can't find anything on this subject except for an old website which was offering bundles of domains which could be bought by a SMSF. Of course just because someone was selling them doesn't mean that a SMSF can legally hold them...

I can't really see why not though. As long as the domain is purely for investment purposes and not for personal use it will meet the "sole purpose" rule for a SMSF, and of course any income generated by the domain would have to be retained within the fund.

A SMSF is also an entity with it's own ABN, so I assume it would meet AUDA's requirements in the same way that a natural person with an ABN can.

So yeah, any thoughts? I'm in the process of setting up my own SMSF, and I wouldn't mind allocating a percentage of it to domain investment.

PS. I am a financial planner by trade.

I was thinking about something like this the other day, but it was moreso similar to how the REITs operate, having a fund where people can buy into, and investments are made into websites/domains etc.

I don't know much about the SMSF rules though, so can't really help you on that. Ill get one of my mates to post up if he knows about anything, I know he was doing SMSF Compliance for a while in his last job.

I know nothing about SMSF's either, but something that might be a roadblock is that by my understanding, you don't really own the domain - it's just a lease. I don't know what implications this has for super investments, but I thought it might be relevant.

Sounds interesting. Let us know what you find out

Incidentally, I bought SMSFs.com.au a while back (overpaid I think, ah well)

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CocktailRecipes.com.au ★ Photographers.com.au ★ DebitCard.com.au ★ Hockey.com.au ★ Boxing.com.au ★ DomainName.com.au

Yes, you don't technically "own" the domain. From the auda policy:

A registrant does not “own” a domain name. Instead, the registrant holds a licence to use a domain name, for a specified period of time and under certain terms and conditions.

But I can't see any problem in the SMSF holding a licence to use the domain, as long as the sole purpose of holding the licence is to provide a benefit to the beneficiaries of the SMSF.

The company which is providing administration services to my SMSF does not list domains on their approved investments list, but they don't list artwork either, and under the right circumstances a SMSF can legally own artwork.

I have sought clarification from the admin company and am awaiting their response.

Anyway, I'll let you guys know what the final outcome is, because I think this could be something really interesting for many of us.

Hard to see why it wouldn't be possible. There would be some big tax savings in structuring it in that way.

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It's been a few months since I started this thread, but my SMSF is now fully operational.

Unfortunately the provider I am using for the admin/tax/audit side of things isn't keen to allow domain investment. I'm using a no-frills provider, so they like to keep it simple with shares, managed funds and property etc - stuff that they understand when it comes to the audit and tax side of things.

The good news is that no one I've spoken to can find any issues with investing in domains using your super, you just need to find an accountant who is comfortable it.

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SMSF

Great thanks for letting us know!

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CocktailRecipes.com.au ★ Photographers.com.au ★ DebitCard.com.au ★ Hockey.com.au ★ Boxing.com.au ★ DomainName.com.au

I'll find out as my best mate is my accountant and he set up my smsf , personally I don't think it would be a problem.

Easiest thing is to get clarification from tax office or maybe asic

Don

are you licensed?

Cheers
Corey