Appendices and disclaimers

Fifteen tools referenced throughout the book, in the order you will meet them. Photocopy them, rebuild them in a spreadsheet, scribble on them. They are meant to be used, not admired.

Appendix A: the tradie’s two-tick test

Before any SMSF property decision, big or small, run the two ticks.

Tick 1: should I do this?

• Does this move me toward my retirement goals, or just toward owning something?
• Is the timing right for my balance, income and life stage?
• Have I compared it honestly against the boring alternative of doing nothing?
• Would I still want this if nobody ever knew I owned it?

Tick 2: can I do this?

• Is it legal for my fund? (Chapters 4, 10 and 11)
• Do the numbers survive the three way stress test? (Chapter 5)
• Do I have the structure, the team and the buffer in place? (Chapters 10 and 12)
• Can I explain the whole transaction to a sceptical stranger in one sentence?

Two ticks, proceed. One tick, fix the gap first. No ticks, walk away with your head high.

Appendix B: SMSF property readiness scorecard

Score one point for each honest yes. Referenced in chapter 2.

1. Our combined super balance is $200,000 or more ($300,000 or more if the plan involves borrowed commercial property)
2. I know what my current super fund returned over the last five years, and what it charges
3. I have calculated my fund’s break-even percentage using appendix D
4. I can commit at least two hours a month to trustee duties, indefinitely
5. My income and employment are stable enough to keep contributing through a downturn
6. I understand that new SMSF borrowing is only available for business real property, and my plan is built on that reality
7. I am at least ten years from retirement, or already retired with a written income strategy
8. Property inside super would be part of a diversified position, not most of my total wealth
9. I have met with an SMSF specialist accountant about my situation
10. I can explain the sole purpose test in one sentence without notes

8 to 10: green light. Proceed to the tick 2 chapters and build properly.

5 to 7: amber. Genuinely ready in parts. List the missing points; each has a chapter.

0 to 4: red light. Not yet, and now you know exactly why. Set a review date and a trigger.

Appendix C: red flag checklist

The fifteen flags from chapter 3. Tick any that apply today.

1. Combined super balance under $200,000
2. The plan requires borrowing to buy residential property (this one is the law: since 10 August 2026, it cannot be done)
3. Buying because “property is safe” or “property always goes up”
4. Any intention of personal use, ever, including “just occasionally”
5. Being pressured by a spruiker, seminar company or anyone selling urgency
6. Have not compared SMSF costs against the current fund’s returns
7. Under five years from retirement with no written exit strategy
8. No realistic time to manage trustee duties
9. Unstable job or income
10. Doing it to keep up with friends or family
11. Have not met an SMSF specialist accountant
12. Planning a related party transaction without understanding chapter 4
13. Cannot explain the sole purpose test in one sentence
14. Relying on future contributions to make loan repayments work
15. No plan for a long vacancy: three months residential, twelve months commercial

Zero flags: proceed. One or two: address them specifically before spending a dollar. Three or more: walk away for now, with a written trigger for return. Flag 2 at any time: stop and redraw the plan; that door is closed.

Appendix D: break-even calculator

Work with real quotes, not guesses. Referenced in chapters 2 and 5.

Step 1: annual fund costs

• Accounting, administration and tax return: $______ (typical $2,000 to $4,000)
• Independent audit: $______ (typical $500 to $800)
• ATO supervisory levy: $259 (2026 to 27; confirm current)
• ASIC annual review, corporate trustee: $70 special purpose (2026 to 27); around $342 if a standard proprietary company, including many bare trustee companies
• Advice, valuations, legal (average year): $______
• Total annual costs: $______

Step 2: the hurdle

Total annual costs divided by combined super balance, times 100 = ______ per cent

Step 3: the comparison

• My current fund’s fees: ______ per cent
• My current fund’s five year average return: ______ per cent
• The return my SMSF must earn, after all costs, just to match it: ______ per cent

Step 4: the verdict. If the step 3 target needs everything to go right, you have your answer, and it cost you a page instead of five years.

Appendix E: who counts as a related party?

The chapter 4 rules on acquisitions, leases and in-house assets all hinge on this list. When in doubt, assume related and ask your accountant.

Always related:

• Every member of the fund
• Relatives of members: parents, grandparents, brothers, sisters, uncles, aunts, nephews, nieces, children, grandchildren, and lineal descendants, plus the spouses of all of the above
• Spouses and de facto partners of members
• Business partners of members, and those partners’ spouses and children
• Companies controlled by members, their relatives or their partners, alone or together
• Trusts controlled by members, their relatives or their partners, alone or together

The practical tests:

• Could this person sit at your Christmas table without anyone asking who they are? Probably related.
• Do you, your family or your business associates control the entity on the other side of the deal? Related.
• Is the transaction fine anyway? Only through the marked doors: listed securities at market value, business real property at market value, or within the strict structures in chapter 11.

Not automatically related: friends, neighbours, colleagues, cousins’ friends. But remember the sole purpose test still applies: an arm’s length price to a mate chosen to do the mate a favour is still a problem.

Appendix F: the post-ban menu, a decision matrix

Every realistic path to property exposure inside super, as at early 2027. Circle your row; chapter 11 walks the logic.

Path	Practical minimum balance	Borrowing	Related party involvement	Income profile	Liquidity	Complexity	Best suited to
Your own business premises (chapter 8)	$250,000 plus	Yes, LRBA	Buy from and lease to your business, by design	Net rent, tenant pays outgoings	Low	High	Business owners paying rent
Borrowed commercial investment (chapters 6 to 10)	$300,000 plus	Yes, LRBA	Arm’s length only	Net 5 to 7.5 per cent typical	Low	High	Funds wanting direct property with leverage
Residential with cash (chapter 11)	$500,000 plus for balance	No	Strangers only, both directions	Gross 3 to 4.5 per cent typical	Low	Medium	Larger funds diversifying
Ungeared unit trust with family (chapter 11)	Flexible, pooled	Never, by law	Co-ownership by design; leases arm’s length unless BRP	Proportional	Low	High	Families combining on one asset
Tenants in common with a member (chapter 11)	Flexible, pooled	None in practice	Co-ownership by design	Proportional	Low	Medium	Simple family pooling, all cash
Grandfathered residential LRBA (chapter 10)	Already holding	Existing loan; refinance permitted	Strangers only	Gross residential	Low	Medium	Pre 10 August 2026 borrowers
Listed A-REITs (chapter 11)	Any	Inside the vehicle	Not applicable	Distributions, volatile pricing	Daily	Low	Funds under $250,000; liquidity sleeves
Unlisted property trusts (chapter 11)	$50,000 plus	Inside the vehicle	Not applicable	Distributions, slow pricing	Months to years	Low to medium	Income seekers accepting lockups

Appendix G: commercial due diligence checklist

Chapter 12’s process as a worksheet. Every item gets a finding, not just a tick.

The lease (lawyer reviewed)

• Parties, guarantors, and current assignments confirmed
• Term remaining, options, and how options are exercised
• Rent, review mechanism and next review date
• Outgoings clause: what is recoverable, how billed, how reconciled
• Make-good obligations and condition report status
• Permitted use, and how narrow it is
• Assignment and subletting rights
• Retail leases legislation: does it apply, and what does it override?

The tenant

• Company and business name searches
• Years trading, and years in these premises
• Rent ledger from vendor: 24 months, arrears history
• Managing agent’s honest view: would they re-let to them?

The money

• Two years of outgoings reconciliations versus estimates
• Incentives given on the current lease and on comparable evidence
• Implied cap rate versus recent comparable sales
• Face rent versus effective rent

The building and land

• Commercial building inspection: structure, roof, services, compliance
• Asbestos register for older stock
• Zoning, permits, easements, strata records and levies
• Environmental history for industrial: prior uses, contamination question asked in writing

The GST position (chapter 9)

• Vendor registered for GST?
• Tenanted at settlement?
• Contract treatment: going concern, taxable supply, or margin scheme?
• If taxable: GST bridge funded in the settlement plan
• Duty calculated fresh, on the GST inclusive price where applicable

Appendix H: lease analysis worksheet

One page per lease, completed before any offer. The lease is the asset; this page is its x-ray.

• Property and premises: ______
• Landlord and tenant entities: ______
• Guarantees or security: bank guarantee / personal guarantee / bond, amount ______
• Commencement date: ______ Term: ______ Expiry: ______
• Options: ______ Exercise window: ______
• Current rent: $______ net / gross (circle)
• Review mechanism: fixed ______ per cent / CPI / market, on dates ______
• Outgoings: recoverable items ______ Estimated $______ per year, reconciled annually yes / no
• Land tax recoverable? yes / no (Victoria retail: no)
• Incentives on this lease: ______
• Effective rent after incentives: $______
• Permitted use: ______
• Make-good: ______
• Assignment rights: ______
• WALE contribution: years remaining including likely options: ______
• Tenant covenant, in one honest sentence: ______
• If this tenant left, the replacement is: ______ and re-letting would cost roughly $______ and ______ months

Appendix I: property comparison scorecard

Score each candidate property from 1 (poor) to 5 (excellent). Weightings reflect a first direct commercial purchase; adjust deliberately if your strategy differs.

Criterion	Weight	Property 1	Property 2	Property 3
Tenant covenant quality	20 per cent
Lease length and terms (WALE, reviews)	20 per cent
Net yield versus asset class evidence	15 per cent
Re-lettability: breadth of replacement tenant pool	15 per cent
Location and position drivers	10 per cent
Building condition and capital expenditure outlook	10 per cent
Outgoings recoverability	5 per cent
Growth story: rent review engine plus land value	5 per cent

Multiply scores by weights, total, compare. A property that wins on yield and loses on covenant and re-lettability has not won; it has confessed.

Appendix J: LRBA lender comparison sheet

Complete via an SMSF experienced broker before property hunting. Chapter 10 explains every row.

Item	Lender 1	Lender 2	Related party (safe harbour)
Interest rate			9.35 per cent (2026 to 27; resets each July)
Maximum LVR on business real property			70 per cent
Maximum term			15 years
Repayment type			Monthly principal and interest
Application and legal fees			Documentation and mortgage registration costs
Valuation requirements			Independent valuation recommended
Post-settlement liquidity requirement			Set your own: chapter 5 buffer
Personal guarantees required			Not applicable
Bare trust documents acceptable / review fee
Notes			Interest is taxable income to the lender member

Appendix K: annual compliance calendar

Adjust dates to your fund’s lodgement cycle with your accountant, then put every line in your actual calendar.

• July: value every asset at 30 June market value with written evidence; review the investment strategy against actual holdings; confirm insurance considerations documented; check this year’s contribution caps and rates
• July, and each quarter (if GST registered): business activity statement lodged and paid
• On lease anniversary dates: implement rent reviews on time; refresh market rent evidence for any related party lease at least every two to three years and at every market review
• Insurance renewal date: building and landlord policies renewed from correct entity, certificates filed
• Audit season: deliver the chapter 13 folder to the auditor; respond to queries within days, not weeks
• Lodgement: annual return lodged and supervisory levy paid by the fund’s due date
• Any month something happens: purchase, sale, new lease, vacancy, new member, member nearing retirement: minute it, update the strategy, tell the accountant
• Once, and diarised until done: if any member could exceed $3 million, the Division 296 cost base reset election decision, made in the 2026 to 27 annual return before its lodgement deadline

Appendix L: endgame planning worksheet

Complete once now, then annually inside ten years of retirement. Chapter 14 walks every line.

The income requirement

• Target retirement age, each member: ______
• Projected combined balance at that age: $______
• Minimum drawdown at that age (4 per cent under 65, 5 per cent at 65 to 74, 6 per cent at 75 to 79, 7 per cent at 80 to 84, 9 per cent at 85 to 89, 11 per cent at 90 to 94, 14 per cent at 95 plus): ______ per cent = $______ per year, in cash

The income supply

• Projected net property income: $______
• Projected income from liquid assets: $______
• Annual surplus or gap: $______

The plan for the gap (circle and date)

• Build the liquid sleeve: contributions of $______ per year for ______ years, downsizer contributions considered yes / no
• Sell the property inside pension phase at zero capital gains tax: target window ______
• Hold and draw down the sleeve deliberately: sustainable for ______ years
• In specie transfer considered for estate reasons: advice booked ______

The protections

• Transfer balance cap position, each member ($2.1 million general cap from 1 July 2026): ______
• Division 296 exposure now or projected: yes / no; if yes, election and timing advice booked ______
• Binding death benefit nominations valid and current: ______
• Reversionary pension decision made: ______
• Adult children tax exposure (up to 17 per cent on taxable component) reviewed with adviser: ______

Appendix M: document checklist

If it is not in the folder, it did not happen. Chapter 13’s audit folder, itemised.

Fund establishment: trust deed and amendments; trustee company constitution; ATO registration and election to be regulated; trustee declarations signed within 21 days of appointment; investment strategy, current version and history

Purchase: contract of sale naming the bare trustee exactly; going concern clause or GST treatment documented; independent valuation (mandatory where any related party is involved); duty assessment; settlement statement and adjustments; due diligence reports (appendix G)

Borrowing: bare trust deed; loan agreement; registered mortgage; safe harbour compliance file for related party loans (agreement, rate, LVR, repayment records)

Tenancy: executed lease and any variations; market rent evidence, dated, refreshed on schedule; rent ledger; outgoings estimates and reconciliations; incentive documentation; insurance certificates naming the correct owner

Money: fund bank statements, separate from everything personal; BAS lodgements if registered; contribution records against caps

People: binding death benefit nominations; pension establishment documents when the time comes; minutes of every decision that moved money or signed paper

Appendix N: key contacts and resources

Your bench, and the first question that sorts specialists from generalists:

• SMSF specialist accountant or administrator: “How many SMSFs with direct property, and with LRBAs, do you administer?” Double digits or keep looking.
• Commercial property lawyer: “Talk me through how you handle the going concern clause and the bare trustee purchaser name.” Fluency or keep looking.
• Finance broker: “How many business real property LRBAs have you settled since August 2026?” Recent and plural, or keep looking.
• Licensed valuer: engaged for related party purchases and rent, no exceptions.
• Commercial building inspector, and an environmental consultant for industrial with history.
• Commercial managing agent: “Show me a sample outgoings reconciliation and monthly statement.”
• Licensed financial adviser for the personal advice this book deliberately is not.

Always current, always free:

• ato.gov.au, superannuation section: rates, caps, levy amounts, safe harbour rates, rulings and the SMSF newsroom
• moneysmart.gov.au: ASIC’s consumer guidance on SMSFs and advisers
• Your state revenue office: duty and land tax, calculated fresh per deal
• This book’s updates page: nathanhaslewood.com.au/updates

Appendix O: glossary

ACR (auditor contravention report): the report an SMSF auditor must lodge with the ATO when certain rule breaches are found. A flag, not a penalty; see chapter 13.

Accumulation phase: the working years phase of super, taxed at 15 per cent on income and effectively 10 per cent on long held capital gains.

Arm’s length: dealing on the terms strangers would agree: market price, market rent, market behaviour. The foundation of chapters 4 and 8.

A-REIT: a listed Australian real estate investment trust; property exposure with sharemarket liquidity and moods.

Bare trust (holding trust): the separate trust that holds legal title to a property under an LRBA while the fund holds beneficial ownership.

BAS (business activity statement): the periodic GST return a registered fund lodges, usually quarterly.

Business real property (BRP): property used wholly and exclusively in one or more businesses; the key that opens related party purchase, related party leasing and, since 10 August 2026, all new SMSF property borrowing. Includes working farms within the two hectare dwelling concession.

Capitalisation rate (cap rate): the market yield used to value commercial property: value equals net income divided by cap rate.

Condition of release: an event, most commonly retirement after 60 or reaching 65, that unlocks super benefits.

Corporate trustee: a company acting as fund trustee; costs a little more, halves the penalty exposure and simplifies everything else.

Division 296: the extra personal tax on realised earnings attributable to total super balances above $3 million, from 1 July 2026; headline 30 per cent to $10 million, 40 per cent above, thresholds indexed.

Effective rent: the true rent after incentives are spread across the lease term, as opposed to the face rent in the marketing.

Going concern (supply of): a GST free sale of a tenanted property as a running leasing enterprise, when the section 38-325 conditions are met and written into the contract.

Gross lease: a lease where rent is all inclusive and the landlord pays outgoings from it.

In-house asset: broadly, a fund’s loan to, investment in, or asset leased to a related party; capped at 5 per cent of fund assets, with BRP leases the great exception.

Incentive: rent free periods or fitout contributions used to attract commercial tenants; the hidden discount in face rents.

Input tax credit (ITC): the GST a registered fund claims back on purchases and expenses, including at settlement of a taxable property purchase.

In specie transfer: moving an asset itself, rather than cash, into or out of a fund; used at the endgame to pass property to members or beneficiaries.

LRBA (limited recourse borrowing arrangement): the only permitted SMSF borrowing structure: a bare trust holds title, the lender’s recourse is limited to that asset, and since 10 August 2026 the asset must be business real property.

LVR (loan to value ratio): the loan as a percentage of the property’s value; 65 to 70 per cent is the practical ceiling for BRP lending.

Make-good: the tenant’s lease obligation to return premises to an agreed condition on exit.

Margin scheme: a GST method some vendors apply under which the buyer cannot claim any input tax credit; the contract must say so.

NALI / NALE (non-arm’s length income / expenditure): the tax rules that punish non-arm’s length dealings: breaches tied to a specific asset taint all of that asset’s income and gains at 45 per cent, permanently where capital is involved; general expense breaches are taxed at 45 per cent capped at twice the shortfall. Rebuilt in 2024; see chapter 4.

Net lease: a lease where the tenant pays outgoings on top of rent; the commercial standard, and why commercial yields are quoted net.

Outgoings: the property’s running costs: rates, insurance, land tax and similar; recoverable from tenants under net leases, subject to retail legislation.

Pension phase (retirement phase): the phase in which assets supporting a retirement pension are taxed at zero, within the transfer balance cap.

Preservation age: now simply 60; with retirement, a condition of release.

Related party: the wide family of people and entities in appendix E to whom the acquisition, lease and in-house asset rules apply.

Rent review: the lease mechanism that changes rent over the term: fixed percentage, CPI or market.

Safe harbour (related party LRBA): the ATO’s published loan terms, 9.35 per cent for real property in 2026 to 27, at which a related party loan is accepted as arm’s length.

SMSF: a self managed superannuation fund of up to six members, all of whom are trustees or directors of the corporate trustee.

Sole purpose test: the master rule: the fund exists solely to provide retirement benefits; see chapter 4.

Tenant covenant: the quality and reliability of the business behind a lease; half of what you are really buying.

Transfer balance cap (TBC): the lifetime limit on amounts moved into tax free retirement phase; $2.1 million general cap from 1 July 2026, indexed.

Ungeared unit trust: the regulation blessed structure through which a fund and related parties co-own property, on strict never borrow, never charge conditions; see chapter 11.

WALE (weighted average lease expiry): the rent weighted years of lease term remaining across a property; the standard gauge of income security.

Thank you for reading. If this book helped you make a decision, in either direction, it did its job. If it saves you from one bad purchase or powers one great one, tell someone else who is standing where you were.

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

Important disclaimers

This book provides general information and education only. It does not provide, and must not be relied on as, financial product advice, taxation advice, legal advice or credit advice, and it does not consider your objectives, financial situation or needs. Before acting on anything in this book, obtain advice from appropriately licensed and qualified professionals who can consider your personal circumstances.

The author is not a licensed financial adviser, tax agent or legal practitioner. Nothing in this book creates an adviser client relationship of any kind.

Laws, rates, caps and thresholds change. The rules described in this book were verified at the time of writing in early 2027 and include measures that commenced in 2026 and 2027. They will change again. Figures such as the ATO supervisory levy, ASIC fees, contribution caps, the transfer balance cap, safe harbour interest rates, lending terms and market yields are point in time snapshots provided for education, and are date stamped in the text where practical. Always confirm the current position at ato.gov.au, moneysmart.gov.au or with your professional advisers before making decisions. Corrections and updates to this edition are published at nathanhaslewood.com.au/updates.

The characters in this book, including Emma, Raj and Anjali, Sarah and Marcus, Helen and Bruce, and Grace, are fictional composites created for education. Their numbers are illustrative, simplified for teaching, and are not projections or promises of any outcome. Past performance of any asset class is not an indicator of future performance.

References to legislation, including the Superannuation Industry (Supervision) Act 1993, the Treasury Laws Amendment (Tax Reform No. 1) Act 2026 and the Treasury Laws Amendment (Building a Stronger and Fairer Super System) Act 2026, are simplified descriptions for a general audience and are not a substitute for the law itself or for professional interpretation of it.

Property investment involves risk, including the risk of loss. Superannuation involves restrictions on access to your money. An SMSF is not appropriate for everyone. If this book has helped you conclude that it is not appropriate for you, it has done its job just as well as if you buy a building.