Let’s Be Real for a Second

When most people hear “SMSF,” they picture retirees in grey suits, golf clubs, and endless paperwork.But here’s the thing: SMSFs aren’t just for retirees. I’m a millennial, a mum, and a Chartered Accountant who specialises in SMSFs — and I can tell you that more young business owners are using SMSFs to take control of their money.

One of the biggest questions I get? “Can you actually buy property in your SMSF?”The answer: yes — but only if you play by the rules.

The Ground Rules (No Instagram Hype Here)

SMSFs can own property, but the sole purpose test is everything. Translation? Your fund exists to provide retirement benefits — not a holiday house in Byron Bay.

Here’s what you can’t do:

• ❌ You or your family can’t live in the property.

• ❌ You can’t buy a house in your SMSF and “just rent it to your cousin.”

• ❌ You can’t use borrowed money for renos or improvements.

Here’s what you can do:

• ✅ Your SMSF can buy business real property (think offices, warehouses, shops).

• ✅ Your business can lease it back from your SMSF — as long as rent is market rate and documented.

• ✅ Your SMSF can borrow to buy (through an LRBA) if structured correctly.

The Business Real Property Power Play

This is where SMSFs get exciting — especially if you’re a business owner.

Imagine this: instead of paying rent to someone else’s pocket, your business pays rent into your super fund. That rent is:

• Tax deductible for your business.

• Taxed at only 15% inside the SMSF (or 0% if you’re in pension phase later).

Case study:A Hunter Valley tradie in his 30s used his SMSF to buy a commercial shed. His business now pays rent directly to his fund. He’s building wealth in super, not just slogging to pay a landlord.

That’s what I mean by taking control.

The Borrowing Piece (aka “The Scary Part”)

Yes, SMSFs can borrow — but it’s not as simple as a standard mortgage. You’ll need:

• A bare trust to hold the property.

• A lender who understands SMSFs.

• The patience to deal with paperwork (or the right accountant to do it for you).

If set up properly, this can be a game-changer. But get it wrong and the ATO will come knocking.

The Upside and the Catch

Upside:

• Rental income taxed at 15% or 0% (hello, tax efficiency).

• Capital gains concessions if you hold the property long-term.

• Control.

Catch:

• Cashflow pressure (you can’t just dip into your private funds, the SMSF must stand on its own).

• Liquidity issues (property isn’t easily sold if members want their money back).

• Compliance headaches if it’s not managed properly.

Mistakes I See All the Time

• Buying residential property “for the kids to live in.” 🚫

• Renovating with borrowed SMSF money. 🚫

• Forgetting to document leases properly. 🚫

These might sound small, but they can make your fund non-complying — which means a 45% tax hit. Ouch.

Quick Checklist Before You Jump In

• ✅ Does your SMSF deed allow LRBAs?

• ✅ Have you stress-tested the fund’s cashflow?

• ✅ Do you have a valid lease at market rate?

• ✅ Are your records audit-ready?

My Final Word (From a Millennial Accountant Who’s Seen It Done Right and Wrong)

Buying property in an SMSF isn’t for everyone, but if you’re serious about building wealth, especially as a business owner, it can be a total game-changer.

Here’s my take: don’t get caught up in the hype or follow your mate’s “SMSF property hack” from the pub. Do it properly, structure it right, and use your SMSF as the powerful tool it’s meant to be.

As one of the 1% of accountants who is a Female, Chartered Accountant, a registered Tax Agent, and an SMSF Specialist Advisor®, I built my practice to help people like you — young, ambitious, and ready to take control of your money in a smarter way.

By Carissa Greene, Chartered Accountant, SMSF Specialist Advisor®