Appendices and disclaimers

Appendix A: The tradie’s two-tick test

Before a good tradie starts any job, they run two checks. You should do the same before diving into SMSF property.

Find your sweet spot, or have the guts to walk away.

Appendix B: SMSF property readiness scorecard

Score yourself honestly. No one’s watching. Each ‘Yes’ is worth 1 point.

# Q	uestion Y	es/No
1	Do you have at least $200,000 in combined super (you and your partner if applicable)?
2	Can you contribute at least 2 hours per month to SMSF administration and decisions?
3	Are you comfortable making investment decisions without a fund manager?
4	Do you have a clear reason for wanting property specifically (not just “property goes up”)?
5	Can you afford SMSF running costs ($3,000 to $8,000 per year) without stress?
6	Do you have at least 10 years until retirement (or already retired with a clear strategy)?
7	Are you willing to follow strict ATO rules, even when they seem annoying?
8	Do you understand that SMSF property is illiquid (hard to sell quickly)?
9	Can you handle periods of vacancy or unexpected repairs without panic?
10	Have you spoken to (or are you willing to speak to) an SMSF specialist accountant?

Your score: _____ / 10

Score	What it means
8 to 10	Green light. You’re well positioned. Keep reading and build your plan.
5 to 7	Amber light. Some gaps to address. Read carefully and consider what needs to change.
0 to 4	Red light. SMSF property probably isn’t right for you yet. That’s not failure. That’s smart.

Appendix C: Red flag checklist

If any of these apply to you, stop and think very carefully. One red flag is a warning. Three or more? Walk away.

☐	Red flag
☐	Your combined super balance is under $200,000
☐	You’re buying because “everyone says property is safe”
☐	You want to live in or holiday in the property yourself (even “just sometimes”)
☐	You’re being pressured by a property spruiker or seminar company
☐	You haven’t compared SMSF costs to your current industry fund returns
☐	You’re less than 5 years from retirement with no clear exit strategy
☐	You don’t have time to manage an SMSF properly
☐	Your job or income is unstable (affecting your contributions)
☐	You’re doing this to “keep up” with friends or family
☐	You haven’t spoken to an SMSF specialist accountant yet
☐	You’re planning to buy from a related party without understanding the rules
☐	You can’t explain the sole purpose test in one sentence
☐	You’re relying on future super contributions to make repayments
☐	You haven’t considered what happens if the property sits vacant for 6 months

Total red flags: _____

Remember: Walking away isn’t failure. Walking away when the numbers don’t work is exactly what smart investors do.

Appendix D: Break-even calculator

SMSF property isn’t magic. It’s maths. Use this calculator to work out if the numbers stack up for you.

Step 1: Your current situation

Current super balance (combined if applicable)
Your current fund’s average annual return (check your statement)
Your current fund’s annual fees

Step 2: SMSF running costs (annual)

Cost item	Amount
SMSF accountant and tax return ($1,500 to $3,500 typical)
SMSF audit ($500 to $800 typical)
ASIC annual fee ($65)
ATO supervisory levy ($287 typical)
Investment platform fees (if using one)
Insurance premiums (life, TPD, income protection)
Total annual SMSF running costs

Step 3: The break-even calculation

SMSF running costs as a percentage of your super:

(Total annual SMSF costs ÷ Super balance) × 100 = _____%

Step 4: The honest question

Can your SMSF property strategy realistically outperform your current fund by at least this percentage, after accounting for property management fees, maintenance, vacancies, and your time?

If the answer is “probably not” or “I don’t know”, that’s valuable information. It might mean SMSF property isn’t your sweet spot.

Appendix E: Who counts as related?

The ATO cares deeply about who you do business with through your SMSF. Get this wrong and you could face serious penalties. Here’s who counts as a “related party” under the rules.

Definitely related (no exceptions)

What this means in practice

You cannot… B	ut you can…
Buy residential property from a related party	Buy residential property from a stranger at arm’s length
Rent your SMSF residential property to yourself or family	Rent your SMSF residential property to an unrelated tenant
Use your SMSF holiday house for personal holidays	Buy commercial property from a related party (with conditions)
Lend money from your SMSF to family	Lease commercial property to your own business (at market rate)

The golden rule: If in doubt, get it in writing from your SMSF accountant before you proceed. The penalties for getting related party transactions wrong can be severe, including losing your fund’s compliant status entirely.

Appendix F: Residential vs commercial decision matrix

A 2026 note before you score anything: for new purchases from 10 August 2026, borrowing is only available for commercial (business real property). If your plan needs a loan, the residential column is only in play for arrangements grandfathered before that date.

Residential and commercial SMSF property are completely different games. Here’s how they compare.

Factor	Residential	Commercial
Can you buy from family?	No. Never.	Yes, if it’s “business real property”
Can you lease to your own business?	No	Yes, at market rate
Typical yield	2% to 4%	5% to 8%
Typical capital growth	Higher (historically)	Lower (generally)
Vacancy risk	Lower (people always need homes)	Higher (businesses fail)
Lease terms	6 to 12 months typical	3 to 10 years typical
Who pays outgoings?	Landlord (you)	Often tenant (net lease)
LRBA lending available?	Yes, but harder	Yes, often easier for good properties
Liquidity (ease of selling)	Better	Worse
Best for… L	ong-term growth B seekers	usiness owners, yield seekers

Quick decision guide

Consider residential if: You want capital growth, don’t own a business that needs premises, and prefer easier selling later.

Consider commercial if: You own a business that pays rent, want higher yield, and can handle longer vacancy periods.

Appendix G: LRBA lender comparison sheet

From 10 August 2026, this sheet applies to loans for business real property, and to refinancing residential loans grandfathered before that date. New residential LRBAs are no longer available.

SMSF loans (Limited Recourse Borrowing Arrangements) are a different beast to regular home loans. Use this sheet to compare your options.

Factor	Lender 1	Lender 2	Lender 3
Lender name
Interest rate (variable)
Interest rate (fixed)
Maximum LVR residential
Maximum LVR commercial
Minimum loan amount
Maximum loan amount
Application fee
Ongoing annual fee
Valuation fee
Legal/settlement fee
Minimum super balance required
Personal guarantee required?
Interest-only option available?
Maximum loan term

Tip: SMSF loan rates are typically 0.5% to 1.5% higher than standard home loan rates. This is normal. Shop around, but don’t expect standard rates.

Appendix H: SMSF property scorecard

Rate each property you’re considering. Score 1 to 5 for each factor (1 = poor, 5 = excellent).

Property address: _________________________________

Price: ______________ Type: Residential / Commercial

Factor	Score (1-5)	Notes
Rental yield (after all costs)
Location growth potential
Tenant appeal/demand
Property condition (less repairs needed = better)
Liquidity (ease of selling later)
SMSF compliance (meets all rules)
Fits your investment strategy
Depreciation benefits available
Insurance availability and cost
Council and zoning stability

Total score: _____ / 50

40 to 50	Strong candidate. Do your due diligence and proceed with confidence.
30 to 39	Decent option. Address weak areas or keep looking.
Below 30	Not your sweet spot. Keep searching.

Appendix I: Annual compliance calendar

A 2026-27 addition: if your fund holds assets with large built-in gains and any member could ever exceed the Division 296 threshold, ask your accountant about the one-off cost base reset election before the fund’s 2026-27 return is due. It’s irrevocable, so it deserves a proper conversation, not a deadline scramble.

Running an SMSF means hitting deadlines. Miss them and you’ll face penalties. Here’s your year at a glance.

When	What	Done?
July	New financial year begins. Review investment strategy.	☐
July	Update property valuations to market value.	☐
July	Roll over any unused concessional contribution cap.	☐
August	Review insurance cover for members.	☐
October	Lodge annual return if self-preparing (or give to accountant).	☐
October	Pay SMSF supervisory levy.	☐
Quarterly	PAYG instalments (if applicable).	☐
Quarterly	BAS lodgement (if registered for GST).	☐
Ongoing	Keep receipts for all expenses.	☐
Ongoing	Document all trustee decisions in minutes.	☐
Ongoing	Keep property documents (lease, insurance, repairs).	☐
Before 30 June	Maximise contributions within caps.	☐
Before 30 June	Pay deductible expenses before year end.	☐
May	Independent audit arranged and completed.	☐

Tip: Most SMSF accountants will remind you of these deadlines. But ultimately, it’s your fund and your responsibility. Don’t rely on reminders alone.

Appendix J: Endgame planning worksheet

You can’t stay in accumulation phase forever. Eventually you’ll need to draw a pension or exit. Plan your endgame now.

Your current situation

Your current age
Your planned retirement age
Years until retirement
Current SMSF property value (estimate)
Current SMSF liquid assets (cash, shares)
Any LRBA debt remaining?

The pension phase problem

When you start a pension from your SMSF, you must pay yourself in cash. Property can’t be split into pension payments. This means you need enough liquid assets to cover pension payments, or a plan to sell the property.

Calculation	Your numbers
Minimum pension payment required at age 65 (4% of balance)
Minimum pension payment required at age 75 (5% of balance)
Expected annual rent from SMSF property
Shortfall (pension minus rent)
Years of liquid assets to cover shortfall

Your exit strategy (tick one)

☐	Sell property before pension phase and reinvest in liquid assets
☐	Keep property and use rent plus other assets for pension payments
☐	Transfer property out of SMSF as an in-specie benefit (complex, get advice)
☐	Wind up SMSF entirely and transfer to industry/retail fund
☐	Not sure yet. Need to discuss with accountant/adviser.

The worst time to figure out your exit strategy is when you’re forced to. Plan now.

Appendix K: Document checklist

Buying property through your SMSF involves a mountain of paperwork. Here’s everything you’ll need.

Before you start looking

☐	SMSF trust deed (check it allows property and borrowing)
☐	SMSF investment strategy (updated to include property)
☐	Trustee meeting minutes approving property purchase
☐	Recent SMSF financial statements
☐	Member statements showing balances

For the loan application (if borrowing)

☐	SMSF trust deed
☐	Last two years of SMSF tax returns and financials
☐	Personal ID for all members (drivers licence, passport)
☐	Personal financial statements for guarantors (if required)
☐	Details of the property (contract of sale, valuation)
☐	Evidence of rental income potential

For the property purchase

☐	Contract of sale (in the name of the bare trustee, not the SMSF)
☐	Bare trust deed (holding trustee arrangement)
☐	Section 32 vendor statement (Victoria) or equivalent
☐	Building and pest inspection reports
☐	Strata/body corporate records (if applicable)
☐	Title search
☐	Land tax assessment
☐	Council rates notice

After settlement

☐	Landlord insurance policy (in SMSF trustee name)
☐	Property management agreement (if using an agent)
☐	Lease agreement with tenant
☐	Depreciation schedule (from quantity surveyor)
☐	Updated SMSF investment strategy reflecting purchase
☐	Trustee minutes recording the purchase completion

Appendix L: Key contacts and resources

Bookmark these. You’ll need them.

Government and regulators

Organisation	Website
Australian Taxation Office (ATO)	ato.gov.au/super/self-managed-super-funds
ASIC (MoneySmart)	moneysmart.gov.au
APRA	apra.gov.au
ABR (ABN Lookup)	abr.business.gov.au

Professional registers (find qualified advisers)

Register	Website
SMSF Association	smsfassociation.com (find a specialist)
CPA Australia	cpaaustralia.com.au
Chartered Accountants ANZ	charteredaccountantsanz.com
Financial Adviser Register	moneysmart.gov.au/financial-advice
MFAA (Mortgage Brokers)	mfaa.com.au

Useful ATO resources

Topic	Search on ato.gov.au
SMSF borrowing (LRBA) rules	“Limited recourse borrowing | arrangements” |
Sole purpose test	“Sole purpose test SMSF” |
Related party transactions	“Related party SMSF” |
In-house asset rules	“In-house assets SMSF” |
Business real property	“Business real property SMSF” |
SMSF penalties	“Administrative penalties SMSF” |

Always verify any advice against official ATO guidance. Rules change. The ATO website is the source of truth.

Appendix M: Glossary of abbreviations

The finance industry loves its acronyms. Here’s what they all mean.

Abbrev.	What it means
ABN	Australian Business Number. Your SMSF has one.
ASIC	Australian Securities and Investments Commission. Corporate regulator.
ATO	Australian Taxation Office. The big dog. They regulate SMSFs.
CGT	Capital Gains Tax. Tax on profit when you sell an asset.
ECPI	Exempt Current Pension Income. Tax exemption for pension phase.
GST	Goods and Services Tax. 10% tax on most things.
LRBA	Limited Recourse Borrowing Arrangement. How SMSFs borrow for property.
LVR	Loan-to-Value Ratio. How much you borrow versus property value.
NALI	Non-Arm’s Length Income. Income taxed at 45% due to dodgy dealings.
SIS Act	Superannuation Industry (Supervision) Act 1993. The rulebook for super.
SMSF	Self-Managed Superannuation Fund. Your own super fund, your rules (within limits).
TBAR	Transfer Balance Account Reporting. Tells ATO about pension phase moves.
TBC	Transfer Balance Cap. Maximum you can move to tax-free pension phase.

Two additions for this edition.

Business real property: land and buildings used wholly and exclusively in one or more businesses, as defined in section 66 of the superannuation law. From 10 August 2026, the only kind of real property an SMSF can borrow to buy.

Division 296: an additional personal tax, from 1 July 2026, on superannuation earnings attributable to total balances above $3 million (headline 30 per cent) and above $10 million (headline 40 per cent). Realised earnings only; thresholds indexed.

Important disclaimers

This edition (updated July 2026)

This edition was updated in July 2026 for three major changes: the ban on new residential LRBAs commencing 10 August 2026, Division 296 commencing 1 July 2026, and the May 2026 federal budget’s changes to negative gearing and capital gains tax outside super, which start 1 July 2027. Superannuation law is moving quickly. Every rule and figure in this book was checked in July 2026 and will drift with time; always confirm the current position with the ATO or your SMSF professional before acting on anything here.

Please read this before acting on anything in this book.

This is not financial advice

This book provides general information only. It is not personal financial advice, tax advice, or legal advice. The information here does not take into account your individual objectives, financial situation, or needs. Before making any decisions about SMSFs or property investment, you should consult with qualified professionals who can assess your specific circumstances.

Rules change

Superannuation and taxation laws in Australia change frequently. The information in this book was current at the time of writing, but rules may have changed since publication. Always verify current rules with the ATO website (ato.gov.au) or a qualified SMSF specialist before taking action.

The characters are fictional

Sarah and Marcus Chen, Raj Patel, Helen and Bruce Thompson, and Emma Zhang are fictional characters created to illustrate concepts. Any resemblance to real people is coincidental. Their scenarios are simplified examples, not comprehensive case studies.

Your results will vary

The author’s personal experiences with property investment are exactly that: personal. Property markets, economic conditions, interest rates, and individual circumstances vary enormously. Past performance of any investment does not guarantee future results. What worked for one person may not work for you.

Get proper advice

SMSFs are complex. The penalties for getting things wrong can be severe, including losing your fund’s complying status and facing significant tax consequences. At minimum, you should work with an SMSF specialist accountant and a solicitor experienced in SMSF matters. A good adviser is not an expense. They’re an investment in getting it right.

The author’s limitation

The author is a property investor sharing his research and experience. He is not a licensed financial adviser, accountant, or solicitor. This book is intended to help you ask better questions and understand the landscape, not to replace professional advice tailored to your situation.

Find your sweet spot, or have the guts to walk away.