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Self Managed Super
Fund (SMSF)

Some Australians choose to explore property as part of their retirement strategy through a Self-Managed Super Fund.

This structure involves strict legal, lending and compliance requirements and is not suitable for everyone. This page provides general educational information only.

Request an SMSF Information Call
*General information only. No personal advice provided.

Why SMSF Property?

  • A Self-Managed Super Fund is a private superannuation fund regulated by the Australian Taxation Office. Trustees of an SMSF are responsible for making all investment decisions and ensuring the fund remains compliant with superannuation law.

  • Under certain conditions, an SMSF can acquire property for investment purposes. Property held within an SMSF must be purchased and maintained solely for the purpose of providing retirement benefits to members. The fund must meet strict legislative, audit and reporting obligations.
  • According to the Australian Taxation Office, there are over one million SMSF members in Australia, with the sector holding more than nine hundred billion dollars in assets nationally.

How SMSF Property Structures Work

When an SMSF acquires property using borrowed funds, the purchase must be completed using a Limited Recourse Borrowing Arrangement (LRBA). This structure limits the lender’s security to the single asset being acquired.

Key features of an LRBA structure include:

  • The property is held in a separate bare trust
  • The SMSF is the beneficial owner
  • Loan repayments must be made directly from the SMSF
  • The lender’s rights are limited to that asset only

Our Buyer’s Agent Services Include:

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Why SMSF Property?

  • A Self-Managed Super Fund is a private superannuation fund regulated by the Australian Taxation Office. Trustees of an SMSF are responsible for making all investment decisions and ensuring the fund remains compliant with superannuation law.

  • Under certain conditions, an SMSF can acquire property for investment purposes. Property held within an SMSF must be purchased and maintained solely for the purpose of providing retirement benefits to members. The fund must meet strict legislative, audit and reporting obligations.
  • According to the Australian Taxation Office, there are over one million SMSF members in Australia, with the sector holding more than nine hundred billion dollars in assets nationally.

How SMSF Property Structures Work

When an SMSF acquires property using borrowed funds, the purchase must be completed using a Limited Recourse Borrowing Arrangement (LRBA). This structure limits the lender’s security to the single asset being acquired.

Key features of an LRBA structure include:

  • The property is held in a separate bare trust
  • The SMSF is the beneficial owner
  • Loan repayments must be made directly from the SMSF
  • The lender’s rights are limited to that asset only

Capital Requirements and Lending Conditions

SMSF property lending conditions differ from standard residential lending. General characteristics include:

  • Higher deposit requirements
  • More conservative serviceability assessments
  • Limited lender availability
  • Additional legal and administrative costs

Multiple SMSF members may pool contributions within a single fund, subject to legal limits. All lending decisions remain subject to lender assessment and SMSF compliance requirements.

How Much
Do You Need?

  • Typically $150K–$200K in super to start.
  • This can be pooled between members (e.g. husband and wife).
  • With a 25–30% deposit requirement, that means:

Example:

  • $200,000 SMSF balance → deposit + costs for a property worth up to ~$700,000.
  • Rental income contributes to repayments.
  • Tax concessions apply inside super.

Rules You Need to Know (Keep it Compliant)

To stay compliant with the ATO and SIS Act, SMSF property purchases must follow strict rules:


  • Must meet the ‘sole purpose test’ (benefit for retirement, not personal use).
  • Property must be for investment only (cannot live in it or rent to family).
  • Loans must be via a Limited Recourse Borrowing Arrangement (LRBA).
  • Ongoing obligations include annual audits, SMSF compliance, and tax reporting.

Citadel Advantage

Most Australians never use their SMSF to its full potential because the process is complex. That’s where we come in.

We help with:

  • Identifying SMSF-compliant property opportunities.
  • Running the numbers on long-term capital growth vs. yield.
  • Working alongside your accountant, SMSF administrator, and broker.
  • Sourcing properties Aus-wide that fit within SMSF lending rules.
  • Providing a GamePlan to map your retirement outcomes.
Book a Free SMSF Property Consultation

Free Download!

SMSF Property Playbook 101 - Your Guide to SMSF Property Investing

SMSF property investment doesn’t need to be complicated. It just needs to be strategic.

We hope this guide has given you clear insights into the rules, benefits, and practical steps for safely and effectively investing your superannuation in property. It’s time to take control of your financial future.





    Free Download!

    SMSF Property Playbook 101 - Your Guide to SMSF Property Investing

    SMSF property investment doesn’t need to be complicated. It just needs to be strategic.

    We hope this guide has given you clear insights into the rules, benefits, and practical steps for safely and effectively investing your superannuation in property. It’s time to take control of your financial future.

    Here’s what our previous customers have to say

    Frequently Asked Questions

    Looking for guidance before investing through an SMSF? These FAQs explain how SMSFs work, key compliance rules, professional support requirements, and what you need to know to invest confidently for retirement.

    What Is An SMSF Investment Strategy, And Do I Need One?
    An SMSF investment strategy defines how your super is invested to meet retirement goals. Australian law requires every SMSF to document, review, and follow this strategy.
    An SMSF allows Australians to directly control super investments, including property and shares, while complying with ATO regulations and using tax-effective structures to build retirement wealth.
    Most SMSF trustees engage accountants or advisers. Citadel Agency works alongside trusted professionals to help Australian investors align compliant SMSF structures with long-term property investment strategies.
    Breaching SMSF rules may trigger ATO penalties, fines, or trustee disqualification. Citadel Agency helps investors structure compliant SMSF property investments to reduce regulatory and financial risk.
    Australians can access SMSF investments after reaching preservation age and meeting a condition of release, such as retirement or commencing an account-based super pension.
    Setting up an SMSF involves creating a trust, appointing trustees, drafting an investment strategy, registering with the ATO, and opening compliant bank and brokerage accounts.
    Australian SMSFs must complete an independent audit every financial year. Citadel Agency ensures investment structures support smooth audits and ongoing ATO compliance.
    SMSF trustees need knowledge of Australian super laws, tax obligations, investment risk, and record-keeping. Citadel Agency supports investors with structured guidance and compliance-focused strategies.