SMSF property — commercial LRBAs, grandfathered loans and cash purchases
Borrowing to buy commercial property in super requires a Limited Recourse Borrowing Arrangement (LRBA), a separate custodian (bare) trust and a corporate trustee structure. Our Premium service handles that setup end-to-end, administers existing residential LRBAs that are grandfathered under the 2026 rules, and supports outright property purchases funded with SMSF cash.
Law change — 10 August 2026: SMSFs can no longer enter new Limited Recourse Borrowing Arrangements to buy residential property. Existing residential LRBAs entered before that date are fully grandfathered and we continue to administer them. Commercial (business real property) LRBAs and outright cash purchases are unaffected. ATO guidance
2026 law change: SMSF borrowing and residential property
Under the Treasury Laws Amendment (Tax Reform No. 1) Act 2026, an SMSF is prohibited from entering into a new Limited Recourse Borrowing Arrangement (LRBA) to acquire residential property on or after 10 August 2026. Here is exactly what that means for your fund.
- New residential LRBAs are prohibited. We no longer facilitate the setup of new residential SMSF loans.
- Existing residential LRBAs are grandfathered. Arrangements entered into before 10 August 2026 continue as normal, and easySMSF provides full ongoing administration, accounting, loan reconciliation and independent audit for them.
- Commercial LRBAs are unaffected. Borrowing to acquire business real property — including your own business premises — remains fully permitted.
- Outright residential purchases are still allowed. An SMSF can buy residential property with fund cash, with no borrowing and no bare trust.
General information only, not financial or legal advice. See the ATO guidance on the 10 August 2026 LRBA changes.
Specialist deeds
A bare/custodian trust deed drafted specifically for the property, plus an SMSF deed update to satisfy s.67A of the SIS Act.
Two corporate entities
A corporate trustee for the SMSF and a separate custodian trustee company to hold legal title to the property.
Lender-ready
Documents in the format major SMSF lenders expect, so finance approval doesn't stall on structure issues.
How it works
SMSF borrowing via an LRBA & custodian trust
The lender's recourse is limited to the single property held in the bare trust — your other fund assets are protected. Legal title sits with the custodian trustee until the loan is fully repaid, then transfers to the SMSF trustee.
- 1
Members contribute
Members make contributions and rollovers into the SMSF.
- 2
Lender provides LRBA
Lender advances funds under a limited-recourse loan to the SMSF trustee.
- 3
Custodian holds title
The custodian trustee acquires and holds legal title to the property on bare trust.
- 4
SMSF holds beneficial interest
Rent flows to the SMSF; the SMSF makes loan repayments. On payout, title transfers to the SMSF.
Premium setup includes
- Special-purpose corporate trustee company documents prepared and the ASIC application lodged as your agent ($636 company registration fee payable to ASIC)
- Bare trust (custodian / holding trust) deed prepared for the specific commercial property
- Custodian trustee company — separate corporate entity to hold legal title
- SMSF trust deed reviewed and updated for LRBA compliance
- Investment strategy update reflecting the property and gearing
- Lender liaison — documents in the form major SMSF lenders accept
- Coordination with your conveyancer and mortgage broker
- Stamping guidance for your state/territory (where applicable)
Ongoing administration
- All standard annual administration, accounting and audit
- Full ongoing administration for grandfathered residential LRBAs entered before 10 August 2026
- LRBA-specific compliance: arm's-length terms, in-house asset rules, repair vs improvement tests
- Rental income and expense tracking against the property
- Loan reconciliation and interest deductibility review
- Tenant bond, insurance and council rates record-keeping
Premium pricing
Specialist setup, transparent fee
Property in super takes more legal scaffolding than a standard fund — two companies, two trusts, and lender-graded documents. Our Premium fee reflects that, and is published upfront.
SMSF + LRBA Property Setup
$3,850one-off, all-inclusive
Professional fee, GST inclusive. The ASIC company fees for the SMSF corporate trustee and the custodian trustee company (currently $636 each) are government charges payable to ASIC at cost.
- SMSF establishment & deed
- Corporate trustee company
- Bare/custodian trust deed
- Custodian trustee company
- Investment strategy update
- Lender-ready document pack
Ongoing admin uplift
+$65per month
Added to your standard ongoing admin fee while the LRBA is active — covers loan reconciliation, gearing compliance and property record-keeping.
How the market prices this
Indicative ranges from publicly listed Australian SMSF providers for a corporate-trustee SMSF with a bare trust + LRBA structure. For comparison only — providers vary.
| Component | Typical market range | easySMSF Premium |
|---|---|---|
| SMSF + corporate trustee setup | Up to $2,200 | Included |
| Bare trust deed | Up to $1,500 | Included |
| Custodian trustee company (ASIC) | Up to $1,400 | Included |
| Investment strategy update | Up to $300 | Included |
| Total establishment | Up to $5,400 | $3,850 flat |
| Ongoing admin uplift (LRBA) | Up to $1,500 per year | $780 per year |
Stamp duty on the bare trust deed (where applicable in NSW or VIC) is paid to the relevant state revenue office and is not included in any provider's setup fee.
LRBA & SMSF property FAQ
Straight answers to the questions we get most often about borrowing to buy property inside a self-managed super fund.
Related
Related guides
Using super to buy a house
FHSS scheme vs SMSF property — what's allowed and what's not.
Read: Using super to buy a houseSMSF for property investors
Strategy primer if direct property is the core of your plan.
Read: SMSF for property investorsBare trust explained
Why an LRBA needs a custodian/bare trust and how it works.
Read: Bare trust explainedCorporate trustee
Why most lenders insist on a corporate trustee for an LRBA.
Read: Corporate trusteePricing
Property-fund admin pricing including LRBA-specific work.
Read: PricingStart setup
Begin your SMSF + LRBA application online.
Read: Start setupSend an enquiry
Get a written response before you sign with a lender.
Read: Send an enquiry