SMSF investments reference
SMSF investments allowed: the complete asset list
By easySMSF, SMSF Specialist Team · Updated
One page, every asset class, and the rule that decides whether your fund can hold it. Use it as a reference before you buy, and as a check before 30 June.
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How to read this list
Australian super law never publishes a list of approved investments. Instead it applies five filters to everything a fund holds: the sole purpose test, the 5% in-house asset limit, arm's-length pricing, the related-party acquisition ban, and the fund's own written investment strategy. An asset that clears all five is generally allowed, whatever it is.
That is why the table below is organised by rule rather than by product. Two funds can hold the same building and get different answers — one leases it to an unrelated tenant, the other lets a member's family use it on weekends. The asset didn't change; the purpose did.
Where an asset is allowed with conditions, the conditions are where audits go wrong: crypto sitting in a member's personal wallet, artwork hanging in a member's home, a related unit trust that quietly grew past 5% of fund value. Those are administrative failures, not investment failures, and they are the ones easySMSF's annual process is designed to catch before the auditor does.
- Sole purpose test (SIS s.62) applies to every asset without exception
- 5% in-house asset limit measured at 30 June each year
- Arm's-length pricing or income is taxed at 45% as non-arm's-length income
- Most assets cannot be acquired from a member — listed securities and business real property are the main carve-outs
- Written investment strategy must genuinely cover what the fund holds
Asset-by-asset reference
| Asset | Status | The rule that applies |
|---|---|---|
| Australian listed shares, ETFs, LICs, LITs | Allowed | Held in the fund's name through a broker account in the fund's name. |
| International shares and ETFs | Allowed | Same rules; valued in AUD at 30 June and reported with foreign income. |
| Managed funds and bonds | Allowed | Widely-held funds may even be acquired from a related party at market value. |
| Cash accounts and term deposits | Allowed | Must be in the fund's name — never a member's personal account. |
| Commercial (business real) property | Allowed with conditions | May be leased to a related business at documented market rent; can be funded with an LRBA. |
| Residential property | Allowed with conditions | Bought outright with fund cash. No member or relative may live in it or rent it. New residential LRBAs are not available from 10 August 2026; earlier ones are grandfathered. |
| Cryptocurrency | Allowed with conditions | Held in the fund's own name on a supported Australian exchange — CoinSpot, Swyftx, Coinstash, Bitaroo or Independent Reserve. No private or hardware wallets, no offshore accounts. |
| Collectibles and personal-use assets | Allowed with conditions | SIS Reg 13.18AA: insured in the fund's name within seven days, not stored in a member's home, not used by anyone related. |
| Unlisted companies and unit trusts | Allowed with conditions | Fine if genuinely unrelated. Related trusts count towards the 5% in-house asset limit unless they meet SIS Reg 13.22C. |
| Derivatives and options | Allowed with conditions | Permitted where the strategy covers them and no charge is created over fund assets; a derivative risk statement is expected. |
| Loans to members or relatives | Not allowed | Prohibited outright under SIS s.65 — no exceptions, no interest rate makes it acceptable. |
| Assets used personally | Not allowed | Holiday homes, artwork on a member's wall, a car a member drives — all fail the sole purpose test. |
| Residential property bought from a member | Not allowed | Related-party acquisition ban applies even at full market value. |
| Assets charged as security for personal borrowing | Not allowed | Fund assets cannot be mortgaged outside a compliant LRBA structure. |
General information for trustees. It doesn't take your personal circumstances into account.
Each asset class in detail
The rules that apply, and the traps that show up in real audits.
International shares and ETFs
Held the same way as domestic shares, with currency and foreign-income reporting on top.
The rules
- Account in the fund's name with a broker that supports SMSF entities.
- Positions and income converted to Australian dollars for reporting.
- Foreign withholding tax is recorded so the fund can claim the offset.
- The fund must keep its Australian residency status — central management and control stays in Australia.
Common traps
- Members moving overseas long-term and continuing to make decisions from there, risking residency.
- Missing W-8BEN-E paperwork, so US dividends are withheld at the higher rate.
- Using a personal international brokerage login for fund trades.
Cash, term deposits and cash management accounts
The fund's liquidity layer — and the account every audit reconciles first.
The rules
- Every account in the fund's exact name and ABN.
- Enough accessible cash to pay expenses, tax, insurance premiums and any pension payments.
- Term deposit maturities should be staggered against known outgoings.
Common traps
- Personal expenses paid from the fund account, even if repaid the same week.
- Locking the whole balance into a long term deposit, then having nothing available to pay the annual levy or a minimum pension.
- Contributions received into a member's personal account and forwarded later.
Commercial (business real) property
The classic SMSF strategy for business owners: the fund owns the premises, the business rents it.
The rules
- Must be business real property — used wholly and exclusively in a business.
- May be acquired from a member or related party at market value, supported by a valuation.
- A written lease at market rent, with rent actually paid on time, every time.
- Can be funded with a limited recourse borrowing arrangement held through a bare trust.
Common traps
- Rent 'accrued' but not paid while the business is tight — this is the single most common breach in this class.
- No written lease, or a lease that expired years ago.
- Mixed-use premises with a residential flat above, which may fail the wholly-and-exclusively test.
- Improvements funded from borrowed money under an LRBA.
Residential property
Permitted, but the related-party rules are absolute and there is no room to negotiate them.
The rules
- Bought from an unrelated vendor — never from a member or relative, at any price.
- No member, relative or related party may live in it or rent it, even at full market rent.
- Bought outright with fund cash. New residential limited recourse borrowing arrangements are not available from 10 August 2026; arrangements entered before that date continue unchanged.
- Market valuation required at 30 June each year.
Common traps
- A child at university moving into the fund's investment property.
- Using the fund's property personally for a few weeks a year.
- Renovations paid personally by a member and not properly treated as a contribution.
- Buying a house-and-land package under an existing borrowing — the land and the build are two acquirable assets.
Cryptocurrency
Allowed, but only where custody and valuation can be evidenced for the auditor.
The rules
- Held in the fund's own name on a supported Australian exchange: CoinSpot, Swyftx, Coinstash, Bitaroo or Independent Reserve.
- Valued at the 30 June market price with an exchange statement as evidence.
- The investment strategy must genuinely contemplate the allocation.
- Crypto cannot be acquired from a member — it is not on the carve-out list.
Common traps
- Private or hardware wallets, offshore exchanges and any platform outside the supported list — we can't support these funds.
- A member's existing personal holdings 'moved into' the fund.
- Staking or DeFi arrangements where ownership and control can't be evidenced.
Collectibles and personal-use assets
Art, wine, classic cars, jewellery, memorabilia — legal, and tightly policed by SIS Reg 13.18AA.
The rules
- Insured in the fund's name within seven days of acquisition.
- Not stored in a member's private residence.
- Not used or displayed by any member or related party.
- Storage decision documented in writing and kept for ten years.
- Any sale to a related party must be at a valuation from a qualified independent valuer.
Common traps
- The seven-day insurance window quietly missed.
- A painting hanging in a member's office 'for safekeeping'.
- A classic car started and driven periodically to maintain it.
Unlisted companies and unit trusts
Fine when genuinely unrelated; a compliance project when related.
The rules
- Unrelated unlisted investments are treated like any other asset and need an annual valuation.
- Related trusts and companies count towards the 5% in-house asset limit unless the trust satisfies SIS Reg 13.22C.
- A 13.22C trust must hold no borrowings, no charges over assets and no loans to other entities.
Common traps
- A 13.22C trust taking on a small overdraft, which permanently taints it — the exemption can never be regained.
- A related trust drifting past 5% because the fund's other assets fell in value.
- No independent valuation of the unlisted holding at 30 June.
Derivatives, options and warrants
Permitted where the strategy covers them and no charge is created over fund assets.
The rules
- The investment strategy must expressly address derivative use.
- A derivative risk statement is expected where the fund uses them regularly.
- Covered call writing over shares the fund already owns is the common, low-risk use.
Common traps
- Margin arrangements that create a charge over fund assets, which is prohibited.
- Naked positions the strategy never contemplated.
What the fund can never hold
Four hard prohibitions that no structure, rate or paperwork can fix.
The rules
- No loans or financial assistance to members or their relatives (SIS s.65).
- No assets used personally by members — holiday homes, artwork on the wall, a driven car.
- No residential property acquired from a member or relative.
- No charge over fund assets outside a compliant limited recourse borrowing arrangement.
Common traps
- A short-term 'loan' to a member's business repaid quickly — still a breach the day it is made.
- Using a fund term deposit as security for a personal or business facility.
Frequently asked questions
General advice warning
Figures shown are illustrative only and based on the inputs and assumptions you provide. They are general information, not personal financial product advice. Consider your objectives, financial situation and needs, and seek personal advice from a licensed financial adviser before acting. easySMSF does not hold an Australian Financial Services Licence (AFSL).