0431 516 783
SMSF PROPERTY INVESTMENT

Property in your SMSF, set up properly.

Buying property through a self-managed super fund can work well — but the rules are strict and mistakes are expensive to undo. We handle the structure, the limited recourse borrowing arrangement, the annual accounts and the audit, so the fund stays compliant.

Call 0431 516 783 What's included →
LRBA & bare trust setup Annual SMSF returns Audit liaison
WHERE IT GOES WRONG

The SMSF property traps.

01

Buying from the wrong person.

An SMSF generally can't acquire residential property from a member or related party. Business real property is the main exception.

02

Living in it or renting it to family.

The property must meet the sole purpose test — providing retirement benefits. Members and their relatives can't live in a residential SMSF property or rent it.

03

Borrowing set up incorrectly.

SMSF borrowing has to be a limited recourse borrowing arrangement, with the property held in a separate bare (holding) trust. Get the order of documents wrong and the fund can be in breach.

We get the structure right from day one. Have a yarn with us — no charge.

Call 0431 516 783
WHAT YOU GET

Our SMSF property service.

Structure, accounts, tax and compliance — handled in one place.

Suitability check

Your balance, contributions, liquidity, insurance and exit plan reviewed before the fund commits.

SMSF & corporate trustee setup

Fund establishment, corporate trustee, investment strategy updated to cover the property.

LRBA & bare trust

Limited recourse borrowing arrangement coordinated with your lender and solicitor, and the holding trust set up in the right order.

Annual accounts & tax return

Rental income, expenses, depreciation and the SMSF annual return prepared and lodged.

Audit liaison

We work with the independent SMSF auditor so the audit is clean and on time.

Depreciation inside the fund

A Quantity Surveyor's schedule applied to the fund's return, just like a personal investment.

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SMSF PROPERTY IN PLAIN ENGLISH

Can my SMSF buy property?

Yes, if the fund's trust deed and investment strategy allow it and the purchase meets the superannuation law. The fund must be run for the sole purpose of providing retirement benefits, so no member or relative can get a current-day benefit from the property.

An SMSF generally can't acquire assets from a related party. The main exception is business real property — for example, commercial premises used wholly and exclusively in a business. That's why many business owners buy their own premises through their fund.

How does SMSF borrowing work?

An SMSF can only borrow to buy property through a limited recourse borrowing arrangement (LRBA). The property is held in a separate holding trust until the loan is repaid, and the lender's recourse is limited to that property.

The loan can fund the purchase and repairs, but not improvements that change the character of the asset while the loan is in place.

How is SMSF property taxed?

Net rental income is generally taxed at 15% in accumulation phase. On sale, a fund that has held the property for at least 12 months gets a one-third CGT discount, which means an effective 10% rate on the gain. Income and gains on assets backing retirement-phase pensions can be exempt.

Sources & law referenced

  • Superannuation Industry (Supervision) Act 1993 (Cth) — s 62 (sole purpose test), s 66 (acquisitions from related parties), s 67A (limited recourse borrowing), Part 8 (in-house assets)
  • Income Tax Assessment Act 1997 (Cth) — s 115-100 (discount percentage for complying super funds)

Last reviewed September 2026. Tax law changes often — we check the current position before advising on your situation.

General information only. This page is general in nature and isn't personal tax, financial or legal advice. Speak to a registered tax agent about your own circumstances before acting.

FAQ

SMSF property questions.

Can I live in a property owned by my SMSF?

No. A residential property owned by your SMSF can't be lived in or rented by a member or any of their relatives. The fund has to be run solely to provide retirement benefits.

Can my SMSF buy my business premises?

Often, yes. Business real property can be acquired from a related party at market value, and leased back to your business at market rent under a written lease.

Can my SMSF borrow to buy property?

Only through a limited recourse borrowing arrangement, with the property held in a separate holding (bare) trust until the loan is repaid.

What tax does an SMSF pay on rental income?

Generally 15% on net income in accumulation phase. Capital gains on property held at least 12 months are effectively taxed at 10%. Income supporting retirement-phase pensions can be exempt.

How much do I need in super to buy property in an SMSF?

There's no legal minimum, but the fund needs enough for the deposit, costs, a cash buffer and ongoing loan repayments, and the fees need to make sense against the balance. We model it with you before you decide.

Is this personal financial advice?

No. We handle the tax, accounting, structure and compliance. Whether an SMSF or a particular property is right for you is a financial advice question, and we'll work alongside your licensed financial adviser.

Related services

Rental property tax returns Capital gains tax on property Depreciation schedules Land tax planning Foreign resident CGT

Where we work

Hills District & Norwest Central Coast NSW Sydney CBD
LET'S TALK

Thinking about property in your SMSF?

15 minutes on the phone. We'll walk through the rules, the costs and whether it's likely to work for you.

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