SMSF Property Done Right
Single-contract new builds across Queensland for LRBA compliance. We know which builders can structure this properly — and which ones can’t. Off-market access to SMSF-eligible house & land packages, townhouses, and investment properties.
⚠️ Critical: Most New Builds Won’t Work For SMSF
Over 90% of house & land packages are structured as two separate contracts (land + building). This doesn’t work with LRBA borrowing rules. You need a single contract. Most builders don’t offer this. We only work with the ones who do.
Understanding LRBA & Why Single-Contract Matters
If you’re buying property through your SMSF, you need to understand Limited Recourse Borrowing Arrangements. Here’s what that means in plain English.
What Is LRBA (Limited Recourse Borrowing Arrangement)?
LRBA is the legal structure that allows your SMSF to borrow money to buy property. Without LRBA, your SMSF can only buy what it can afford with cash in the fund.
Here’s how it works:
- Your SMSF borrows money from a lender (bank or specialist SMSF lender)
- The loan is “limited recourse” — if the SMSF can’t repay, the lender can only claim the property, not other SMSF assets
- The property must be held in a bare trust until the loan is fully repaid
- Once paid off, the property transfers into the SMSF’s name
Why Does Single-Contract Matter?
LRBA rules state that the SMSF must acquire a single acquirable asset. Most house & land packages are structured as:
- Contract 1: Purchase the land
- Contract 2: Building contract with the builder
Two contracts = two assets. This violates LRBA rules. The ATO considers this non-compliant.
What you need: A single contract covering both land and building. The builder purchases the land, constructs the house, and sells you the completed package under one contract.
This is called a “turnkey” or “single-contract” build. Only certain builders structure deals this way.
5 Mistakes That Make Properties SMSF-Ineligible
We see accountants and SMSF trustees make these mistakes regularly. Each one makes the property non-compliant with LRBA rules.
Mistake 1: Two Separate Contracts
Buying land in one contract, then signing a building contract separately. This is the most common mistake. Two contracts = two assets = LRBA non-compliant.
Fix: Only buy properties sold under a single turnkey contract.
Mistake 2: Off-The-Plan Without Confirmation
Assuming an off-the-plan property is automatically single-contract. Many aren’t. The contract must explicitly state it covers both land and building as a single transaction.
Fix: Have your SMSF accountant or lawyer review the contract before signing.
Mistake 3: Buying Property You Plan To Live In
SMSF properties must be investment-only. You cannot live in it. Your family cannot live in it. It must be rented to an unrelated tenant at market rent.
Fix: If you want to live in the property eventually, wait until the SMSF sells it to you personally (after you retire), or buy it outside the SMSF.
Mistake 4: Buying From A Related Party
Your SMSF cannot buy property from you, your family, or your business. It must be an arm’s-length transaction with an unrelated seller.
Fix: Only buy from independent builders and developers.
Mistake 5: Not Having SMSF Set Up Before Searching
You need an SMSF trustee structure in place before you sign a property contract. The contract must be in the SMSF trustee’s name, not your personal name.
Fix: Set up your SMSF and bare trust structure with an accountant before you start looking at properties.
Why Most Builders Can’t (Or Won’t) Do Single-Contract Builds
Single-contract builds require the builder to take on more risk and complexity. Most builders avoid them. Here’s why — and why we only work with the ones who do it properly.
Why we’re different: We only work with 3-4 Queensland builders who structure single-contract builds properly. We’ve vetted them. We know their stock. We know they’re LRBA-compliant. You’re not guessing.
Tax Benefits of SMSF Property Ownership
Beyond compliance, here’s why SMSF property makes sense from a tax perspective.
1. Rental Income Taxed at 15% (Accumulation Phase)
If you’re still working and your SMSF is in accumulation phase, rental income is taxed at just 15% — significantly lower than personal income tax rates (which can be 37-45% for high earners).
Example: $30,000 rental income per year = $4,500 tax in SMSF vs $13,500 tax personally (at 45% marginal rate).
2. Rental Income Tax-Free (Pension Phase)
Once you retire and your SMSF is in pension phase, rental income becomes 100% tax-free. No tax on rent, no tax on capital gains if you sell.
3. Capital Gains Tax Discount
If your SMSF holds the property for more than 12 months before selling, it gets a 1/3 CGT discount in accumulation phase. In pension phase, no CGT at all.
4. Depreciation Benefits
New builds qualify for full depreciation deductions (capital works + plant & equipment). This reduces the SMSF’s taxable income, meaning less tax paid on rental income.
Typical Year 1 depreciation: $20,000-$30,000 on a new $500k-$600k property.
How It Works: From SMSF Setup To Settlement
Here’s the step-by-step process for buying SMSF property through us.
SMSF & Bare Trust Setup
Work with your accountant to set up your SMSF (if not already done) and establish a bare trust structure for the LRBA loan. This must be done before you search for properties.
Finance Pre-Approval
Get LRBA loan pre-approval from an SMSF-specialist lender. We can refer you to brokers who understand SMSF lending if needed.
Contact Us
Fill out the Get Started form or call us. We ask: SMSF balance, borrowing capacity, preferred area, investment strategy (cash flow vs growth).
We Match You
We search our single-contract builder network. We present 1-2 SMSF-compliant properties. We confirm with your accountant that the contract structure is compliant.
Contract Signed
Contract signed in SMSF trustee name. Deposit paid from SMSF. Bare trust holds property during loan term.
Settlement & Rental
Property settles (4-6 weeks for completed, 6-18 months for under construction). Property manager finds tenant. Rental income flows to SMSF, taxed at 15% or 0% depending on phase.
Is SMSF Property Right For You?
Good Candidates for SMSF Property:
- SMSF balance of $200k+ (need enough for deposit + costs)
- Stable income to service loan repayments if rental income isn’t enough
- 10+ years until retirement (gives time for capital growth and loan paydown)
- Comfortable with property as a long-term hold (SMSF properties are illiquid)
- Already have a competent SMSF accountant advising you
Not Ideal For:
- SMSF balance under $200k (not enough for deposit + setup costs + buffer)
- Planning to retire within 3-5 years (not enough time for strategy to work)
- Want to live in the property yourself (SMSF properties must be investment-only)
- Don’t have professional SMSF advice (too complex to DIY)
Ready To Find An SMSF-Compliant Property?
We work with accountants and SMSF trustees to find single-contract builds that actually work with LRBA rules. One 10-minute call to see what’s available.
For accountants & financial planners: We can send you a technical one-pager on single-contract structures to share with clients.
See how referrals work →