How to buy property in your SMSF
A step-by-step guide to buying property through your self-managed super fund under the rules that apply from 10 August 2026: cash for residential, cash or an LRBA for commercial.
Cash or borrowing: which is open to you?
Cash purchase
The fund pays the full price and costs from its balance.
- Residential or commercial property
- No bare trust, lender or loan costs
- Simplest structure and admin
- Couples can combine balances in one fund
LRBA borrowing
The fund borrows through a limited recourse loan, with the property held in a bare trust.
- Business real property only (from 10 Aug 2026)
- Lenders commonly lend 60–70% of value
- Bare trust set up before contracts are signed
- One asset per loan
How to buy property in your SMSF
Check the property and your balance
Confirm the property type, how it will be used and whether your fund can cover the price, duty and a cash buffer.
Set up the SMSF with a corporate trustee
Trust deed, ASIC company, ABN, TFN, bank account and ATO registration. Allow 1–2 weeks.
Roll over your super
Existing balances move to the new fund. Rollovers usually take 3–10 business days.
Update the investment strategy
Document why property suits the fund, including liquidity, diversification and insurance.
If borrowing for commercial property: set up the bare trust
The holding trust and its trustee must exist before you sign the contract.
Arrange finance (commercial only)
Get pre-approval from an SMSF commercial lender. Lenders look at the lease, the tenant and the fund’s liquidity.
Sign the contract in the right name
The SMSF trustee for a cash purchase; the bare trustee for an LRBA. Getting this wrong is expensive to fix.
Settle and insure
The SMSF pays the deposit and costs from its own bank account. Insure the property in the trustee’s name.
Keep it compliant every year
Market rent, a lease on file, annual valuation, accounts, audit and tax return.
What you can and can’t do
You can
- Buy residential property with cash, for rental
- Buy commercial property with cash or an LRBA
- Buy your business premises and lease them back at market rent
- Refinance an LRBA taken out before 10 Aug 2026
You can’t
- Take out a new LRBA for residential property
- Live in, holiday in or rent residential property to members or relatives
- Buy residential property from a member or related party
- Use borrowed money to improve the property
What it costs to buy a $650,000 property
Two indicative NSW examples, GST inclusive. See the state-by-state stamp duty table below.
NSW example: $650,000 commercial property, 70% LVR. Costs are stamp duty $23,437, SMSF setup $990, bare trust $1,770 and legal and loan costs of about $2,250.
| Residential, cash | Cost |
|---|---|
| Purchase price | $650,000 |
| Stamp duty (NSW) | $23,437 |
| SMSF and corporate trustee setup | $990 |
| Conveyancing (typical) | $1,800–$2,500 |
| Building and pest (typical) | $500–$800 |
| Cash the fund needs | ~$677,000 |
| Commercial, 70% LRBA | Cost |
|---|---|
| Deposit (30%) | $195,000 |
| Stamp duty (NSW) | $23,437 |
| SMSF and corporate trustee setup | $990 |
| Bare trust setup | $1,770 |
| Loan application and legal (typical) | $1,500–$3,000 |
| Cash the fund needs | ~$223,000 |
Indicative only. Commercial purchases may also carry GST, depending on the property and the lease. Lenders set their own LVR and liquidity requirements. Duty figures as at 24 September 2026.
SMSF stamp duty on a $650,000 property, by state
SMSFs pay the general transfer duty rate. First home buyer and owner-occupier concessions don’t apply. Rates as at September 2026.
General rates as at September 2026 for an Australian-controlled SMSF trustee. SA charges no duty on most non-residential land; the ACT charges none on commercial property up to $2.1m. Victorian commercial property pays duty once, then moves to CIPT.
| State | Rate at $650,000 | Residential | Commercial |
|---|---|---|---|
| NSW | $11,602 + 4.5% over $387,000 | $23,437 | $23,437 |
| VIC | $2,870 + 6% over $130,000 | $34,070 | $34,070* |
| QLD | $17,325 + 4.5% over $540,000 | $22,275 | $22,275 |
| WA | $11,115 + 4.75% over $360,000 | $24,890 | $24,890 |
| SA | $21,330 + 5.5% over $500,000 | $29,580 | $0 |
| TAS | $12,935 + 4.25% over $375,000 | $24,623 | $24,623 |
| ACT | $11,400 + 4.32% over $500,000 | $17,880 | $0 |
| NT | 4.95% of the full value | $32,175 | $32,175 |
South Australia
No stamp duty on non-residential land transferred since 1 July 2018. Primary production land still pays the general rate.
ACT
Commercial property up to $2.1 million is duty-free from 1 July 2026. Eligibility depends on the permitted uses in the Crown lease.
Victoria
*Commercial and industrial property pays duty once, then moves to the commercial and industrial property tax: 1% of site value a year, starting 10 years later.
For an Australian-controlled SMSF trustee buying at $650,000, rounded to the nearest dollar. Thresholds change, often each July. Check your state revenue office calculator before you exchange. Transfers from members into the fund can attract full duty, so get advice first.
Buying property in an SMSF
Can I still borrow to buy an investment house in my SMSF?
Not with a new loan. Since 10 August 2026, a new LRBA can only buy business real property. If you exchanged contracts before that date, your purchase is protected. Read the LRBA changes explainer.
Can my partner and I combine our super to buy a property?
Yes. Both of you can be members of the same SMSF and the fund can use your combined balance to buy with cash.
How long does it take?
Setup and rollover usually take 2–4 weeks. Allow 2–3 months to settle on a commercial property with a loan.
How much stamp duty does an SMSF pay?
The general rate for the state the property is in. On a $650,000 purchase that ranges from $17,880 (ACT residential) to $34,070 (VIC). SA charges no duty on most commercial property and the ACT charges none on commercial property up to $2.1 million. See the table by state.
Is property in super better than holding it personally?
Rent is taxed at up to 15% in accumulation and 0% in retirement phase and capital gains on assets held over 12 months are taxed at an effective 10%. Personal rates go up to 45% plus Medicare. You lose access to the money until retirement and the fund needs enough liquidity for costs.
Talk it through before you buy
We’ll check the property, your contract timing and whether cash or an LRBA fits.
1300 545 516General information only, current as at 24 September 2026. It does not consider your personal circumstances and is not financial advice.