Subdividing a property bought in a SMSF

SMSF & Property Investment
1

I own a property in Melbourne that I bought in my SMSF in 2018. The land size is close to 800 sqm. There is plenty of space in the back to subdivide and build a unit.

Can I do this? I spoke to my accountant but he said it may not be possible. Looking for a second opinion.

2

Yes, you can, if using SMSF funds to build new unit and there is no loan on existing property. If any loan is involved then you cannot do it. Also, there will be some GST and CGT implications as well. Talk to your SMSF accountant do discuss your situation.