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Retire in an SMSF owned Property


How to Retire in a property you own in an SMSF. Can you retire in an SMSF owned property ? How to Retire in an SMSF owned property.

How to Retire in a Property You Own in an SMSF

Living in a Self-Managed Super Fund (SMSF) property after retirement can be achieved if you meet specific conditions and follow the necessary steps. Here’s a comprehensive guide on how to retire in a property you own in an SMSF.

Eligibility for Living in SMSF Property Post-Retirement

You can live in an SMSF property once you retire, provided certain conditions are met:

  • Retirement Age:
    You must reach the age of 60 and leave employment or retire after reaching your preservation age with no intention of returning to work.

  • Access to Superannuation:
    You need to have access to your superannuation and meet a condition of release, such as retirement or cessation of employment after age 60.

Process for Moving into SMSF Property

To live in your SMSF-owned property, the property must be transferred from your SMSF to your personal name. This is known as an ‘in-specie transfer,’ and it must occur at market value. Here’s how you can go about the transfer:

  1. Verify Eligibility for In-Specie Transfer:

    • Ensure the SMSF’s trust deed allows for in-specie transfers and that the transfer complies with superannuation laws.
  2. Execute a Contract of Sale:

    • Prepare a Contract of Sale for transferring the property from the SMSF to the individual. The contract should reflect the property’s market value.
  3. Engage a Solicitor:

    • Involve a solicitor to handle all legal aspects of the transfer, including preparing and executing necessary documents.
  4. Consider Tax Implications:

    • Assess potential tax consequences, such as Capital Gains Tax (CGT) and stamp duty, associated with the transfer.
  5. Transfer Ownership:

    • Finalise the transfer by registering the change of ownership with the relevant land titles registry in your state of residence.

Estimated Duration for Each Step in SMSF Property Transfer Process:


Tax Implications and Other Considerations

When transferring the property from the SMSF to personal ownership, it’s essential to consider potential tax consequences and other implications:

Estimated Costs Breakdown in Property Transfer from SMSF to Individual:


  1. Capital Gains Tax (CGT):
    CGT may apply depending on how long the SMSF has held the property.

  2. Stamp Duty:
    Stamp duty might be payable on the transfer, depending on state regulations.

  3. Legal Fees:
    Legal fees for solicitors and conveyancers should be factored into the total cost.

  4. Centrelink Benefits:
    Consider how the transfer might impact your eligibility for government age pension or other Centrelink benefits.

Example Scenario

John’s Retirement Journey:
John, aged 62, decides to retire from his job. His SMSF owns a property that he wishes to move into. To achieve this, John undertakes an in-specie transfer of the property from his SMSF to his personal name. He consults with a financial adviser to understand the CGT implications and checks how this transfer might affect his Centrelink benefits. The transfer is done at the property’s current market value. Once the process is completed in compliance with all legal and tax requirements, John can move into the property as his primary residence.


Residing in your SMSF property while adhering to the sole purpose test is achievable exclusively through an in-specie transfer. This method becomes viable upon reaching the age of 60, either when you start your retirement or, in some cases, upon terminating gainful employment. The in-specie transfer process effectively shifts the property from your SMSF to your personal ownership, allowing its use for personal purposes.

Always consult a financial adviser or tax lawyer before undertaking this strategy to ensure you comply with all legal and tax requirements and understand the implications for your retirement benefits