Self-managed super fund (SMSF)
A private superannuation fund run by its members, who act as trustees and are responsible for complying with super laws.
- Up to six members, who are usually also trustees
- Can own property if it meets strict rules
- Since 10 August 2026, borrowing is limited to business real property
Property in an SMSF
An SMSF can buy property that meets the sole purpose test and other rules. Members and related parties cannot live in or rent a residential property owned by their fund.
The 2026 borrowing change
Since 10 August 2026, an SMSF can only use a limited recourse borrowing arrangement to buy business real property, such as commercial premises. Residential property can still be bought without borrowing.
SMSF property decisions need a licensed financial adviser and an SMSF accountant. Rothmore assesses the property, not the structure.
Common questions
Can my SMSF buy a house?
Yes, without borrowing, if it meets the rules and members do not live in or rent it.
Can my business rent a property owned by my SMSF?
Business real property can be leased to a related party at market rent, subject to the rules.
Related terms
Sources
General information only. It does not consider your objectives, financial situation or needs, and is not financial, credit, tax or legal advice. Rules change, so check current law and get advice from a licensed professional before acting.