Frequently Asked Questions

A Self-Managed Super Fund (SMSF) is a type of superannuation fund that you manage yourself, giving you full control over how your retirement savings are invested. An SMSF is a trust, which means that the assets within the fund are held in trust for the benefit of its members. As the trustee, you are legally responsible for ensuring the fund meets all its obligations and complies with superannuation laws.

Unlike retail or industry super funds, where decisions are made for you, an SMSF lets you:

• Choose your own investments (like property, shares, or managed funds)
• Tailor your strategy to your personal goals
• Manage tax outcomes more proactively
• Potentially leverage your super to invest in property through a limited recourse loan

At SMSF House, we specialise in helping Australians take control of their super—with the support, structure, and compliance expertise to make it simple and stress-free.

An SMSF can have up to six members.

Every member must also be involved in running the fund—either as an individual trustee or a director of the corporate trustee. That means everyone shares responsibility for making decisions and keeping the fund compliant.

At SMSF House, we help you set up your fund structure the right way from day one, so everyone knows their role and the fund runs smoothly and compliantly.

There’s no legal minimum balance required to set up an SMSF, but the Australian Securities and Investments Commission (ASIC) suggests that SMSFs are typically more cost-effective with a balance of $200,000 or more.
This is because many SMSF expenses—like accounting, auditing, and admin—are fixed costs. The higher your super balance, the more cost-efficient those fees become compared to percentage-based fees in industry or retail funds.

That said, your decision shouldn’t be based on balance alone. At SMSF House, we look at the bigger picture— and whether an SMSF structure makes sense for your situation.

SMSFs are popular because they give people something the big super funds can’t: control, flexibility, and the ability to tailor their super to their own goals.

Here’s why so many Australians are choosing to go the SMSF route:

1. Investment control – You choose where your money goes: property, shares, managed funds, crypto (if you’re game), and more.
2. Flexibility – Tailor your investment strategy, contributions, and retirement planning to suit your personal situation.
3. Tax planning opportunities – Greater control means more ability to manage tax outcomes within the super system.
4. Property investment potential – Use your super to purchase property through your fund (often using leverage), something you can’t do with an industry fund.
5. Transparency – You can see exactly where your money is and how it’s performing—no black box investing.
6. Estate planning control – SMSFs offer more options when it comes to managing how your super is passed on.

At SMSF House, we specialise in helping everyday Australians tap into these benefits—minus the overwhelm. If you want your super to work smarter, not harder, an SMSF might just be your next power move.

SMSFs offer a very different experience compared to industry and retail funds—because you’re in the driver’s seat.

Here’s a quick comparison:

One major advantage of an SMSF is the ability to leverage existing super via an LRBA (Limited Recourse Borrowing Arrangement) to invest in property. This means you can use your super as a deposit and borrow the rest, giving you exposure to the entire value of the property—not just the deposit amount. So instead of making returns on, say, $200,000 sitting in an industry fund, you could be building wealth on a $600,000+ property.

At SMSF House, we guide you through the setup and ongoing admin, making the process smooth and compliant—so you can take control of your super and make it work harder for you.

Setting up an SMSF with SMSF House is simple. We help you set up the SMSF structure, trust deed, and register with the ATO. Then, we open your SMSF bank account, handle rollovers from your existing super, and assist with finding the right property. We set up the Limited Recourse Borrowing Arrangement (LRBA), help you sign the purchase contract, and secure finance approval. Finally, we guide you through settling the property, making it officially owned by your SMSF.

Setting up an SMSF involves a few one-off costs to get your fund established properly and registered with the ATO. These typically include:

• Fund establishment – setting up the trust deed and registering your SMSF with the ATO
• Trustee structure – whether individual or corporate
• ABN and TFN registration
• Bank account setup and documentation

At SMSF House, we make this process simple and stress-free with fixed-fee packages tailored to your needs. No hidden costs, no surprises—just a clear path to getting your SMSF off the ground.

Click here to view our professional fees

The ongoing costs of running an SMSF will depend on the complexity of your fund and your investment strategy, but here’s what you can typically expect:
Regular SMSF expenses include:

• Annual accounting and tax return preparation – to keep your fund compliant with ATO requirements
• Annual independent audit – legally required for all SMSFs
• ASIC fees – if your SMSF has a corporate trustee
• Ongoing admin and lodgement support – including record keeping, correspondence, and trustee support
• Investment-related costs – such as brokerage, property management, legal fees, or interest on loans (if you’re using an LRBA)

And here’s the real value: For two members, these once-off fees are often less than what you’d pay in annual fees inside a typical industry fund—and with an SMSF, you get full control over your investments from day one. With the right support, an SMSF isn’t just cost-effective—it’s a smarter, more empowering way to grow your wealth.

At SMSF House, we offer transparent, fixed-fee packages tailored to your fund—so you’re never guessing what you’re paying for.

Click here to view our professional fees

SMSFs are taxed at a concessional rate of 15% on income earned within the fund, which is generally lower than most individuals’ personal tax rates. Here’s a quick breakdown:

• Investment income (like rent, interest, and dividends) is taxed at 15%
• Capital gains on assets held for more than 12 months get a one-third discount, bringing the tax rate down to 10%
• Franking credits from Australian shares can reduce the overall tax bill
• Contributions (within the concessional cap) are also taxed at 15% when received

Once a member enters retirement phase, income earned on assets supporting a retirement pension is generally tax-free within the SMSF.

At SMSF House, we manage all the tax compliance and reporting so your fund stays on the ATO’s good side. Want to understand the tax implications specific to your situation? That’s our jam — and we’re here to help.

An Electronic Service Address (ESA) is a digital address your SMSF uses to receive SuperStream data — like employer contributions, rollovers, and ATO release authorities. It ensures your fund can communicate securely and efficiently with other superannuation platforms and government systems.

If your SMSF is set up with SMSF House, your ESA is currently:

• BGLSF360 – this is provided as part of our service and supports both contributions and rollovers.

If you’re unsure which ESA applies to your fund, feel free to contact SMSF House and we’ll confirm it for you.

Already have an existing fund or not with us? No problem — click here to view our full guide to ESA providers and find the one that suits your fund.

There’s a bit to stay on top of when it comes to SMSF compliance — but don’t stress. From audit deadlines to annual return lodgement dates, timing matters.

Whether you’re new to SMSFs or already running a fund, staying compliant starts with knowing what’s due — and when. If you’re with SMSF House, we handle all of this for you and send reminders to keep everything running smoothly.

Want the full list of lodgement and audit deadlines? Click here to view our SMSF Compliance Calendar

Your SMSF can purchase property either with available cash or by borrowing through a special structure called an LRBA (Limited Recourse Borrowing Arrangement).

If your fund is borrowing to purchase the property, you’ll need a few additional legal components to ensure the structure is compliant:

The basic structure includes:

Once the loan is fully repaid, the legal title of the property can be transferred to the SMSF.

At SMSF House, we handle the full setup—from structuring your SMSF to forming the bare trust and LRBA—so you can focus on building wealth through property, knowing the compliance is covered.

Want to dive deeper? Book a consultation

Yes—SMSFs must pay stamp duty when purchasing property, just like any other buyer.

Stamp duty:

• Is a state/territory government tax, so the amount and rules vary depending on where the property is located
• Applies whether the SMSF buys a residential or commercial property
• Will also apply when transferring legal ownership from a bare trust to the SMSF after an LRBA loan is repaid (in some states—others offer concessions)

There are no special exemptions just because the buyer is an SMSF, but in certain cases, duty concessions may apply (e.g. related-party commercial property transfers, or refinancing structures).

At SMSF House, we’ll guide you through the process and work alongside legal and conveyancing professionals to ensure stamp duty is correctly assessed and paid — so your SMSF stays compliant at every step.

Yes – if your SMSF owns property and the total taxable land value exceeds the threshold in your state or territory, your fund may be liable for land tax. Unlike individuals, SMSFs generally don’t qualify for exemptions like the principal place of residence.

So while owning property in your SMSF can be a fantastic wealth-building strategy, you’ll want to factor land tax into your cash flow projections and investment decisions.

Generally, no.

Residential property you already own can’t be transferred into your SMSF—especially if you or a related party has lived in or used it. The rules around acquiring assets from related parties are strict, and residential property usually doesn’t meet the criteria.

There are limited exceptions for certain business real properties, but these only apply under specific conditions.

At SMSF House, we can help you understand what’s possible within the SMSF rules and guide you through any tax or compliance considerations.

SMSFs offer a very different experience compared to industry and retail funds—because you’re in the driver’s seat.

Here’s a quick comparison:

Technically, yes — but it’s complex, and usually only an option if your fund has the cash to buy outright.

While SMSFs can invest in overseas property, it comes with significant added risk, compliance challenges, and restrictions. Most importantly, you cannot use a loan (LRBA) to purchase overseas property — borrowing is generally only allowed for Australian-based assets. This means overseas property is typically only an option if your SMSF has the available funds to purchase outright.

Even with cash, the investment must meet all standard SMSF requirements:

1. Sole purpose test – must strictly support your retirement benefit
2. Arm’s length rules – must be bought and managed on commercial terms
3. Proper records and valuations – can be difficult with overseas assets
4. Ongoing compliance – including foreign laws, currency conversions, and ATO reporting

It’s not impossible, but it’s far from simple.

At SMSF House, we don’t recommend overseas property due to the complexity of cross-jurisdictional transactions, hidden compliance hurdles, and lack of legal or political certainty in many markets. Our clients prefer property investments in established Australian markets with strong returns and regulatory clarity.

Not while it’s owned by your SMSF.

Residential property in your SMSF must be held strictly for investment purposes. That means no living in it, no holidays, and no letting family crash there — not even after you retire.

BUT…
Once it’s legally transferred into your own name (like through an in-specie transfer upon retirement), you’re free to live in it, renovate it, or finally make it your beachside dream home. Just make sure the transfer is done properly to stay compliant and avoid nasty tax consequences.

At SMSF House, we’ll guide you through the process and keep your investment squeaky clean and 100% above board.

Yes, it usually does.

When you transfer a property from your SMSF to your personal name (a.k.a. an in-specie transfer), stamp duty typically applies just like a standard property transaction — though the exact rules and rates vary depending on your state or territory.

The good news?
If you’ve reached retirement and met a condition of release, you can transfer the property to yourself and finally live in it — legally and above board.

Residential property? Hard no.
Commercial property? Yes—but only if you play by the rules.

If your SMSF owns residential property, you can’t rent it to yourself, your family, or any related party—even if they pay market rent. It’s a big no-no under the sole purpose test and related party rules, and could land your fund in hot water with the ATO.

But commercial property is a different story. You can lease it to your own business or a related party, as long as:

• The lease is on commercial terms
• The rent is at market rate
• Everything is properly documented and regularly reviewed

At SMSF House, we’ll make sure your lease setup ticks all the compliance boxes—no ATO drama, no surprises, just smart property investing through your super.

Only if it’s commercial property — and the lease stacks up.

If your SMSF owns residential property, you can’t rent it to a family member, friend, or any related party — even if they pay market rent. That breaks the sole purpose test and related party rules, and could trigger serious tax penalties.

Commercial property is the only exception. You can lease it to a related party (like your business or a family member’s company), but only if:

• The rent is at market rate
• The lease is on commercial terms
• It’s fully documented and reviewed regularly
• Basically, no mates’ rates, no shortcuts.

At SMSF House, we’ll make sure everything’s done by the book so your SMSF stays squeaky clean and fully compliant.

Yes — but it depends on how the property is owned.

If your SMSF owns the property outright (no loan involved), you can renovate, improve, or rebuild—provided it aligns with your investment strategy and stays within the rules.

However, if the property was purchased using a loan (under a Limited Recourse Borrowing Arrangement, or LRBA), you can only carry out repairs and maintenance—not improvements that change the character of the property. For example, fixing a broken fence is fine; adding a second storey is not.

Yes, you can refinance an SMSF loan, as long as the new loan also meets all the rules for a Limited Recourse Borrowing Arrangement (LRBA).

This means:

• The new loan must be used to replace the original loan (not to borrow more or redraw equity)
• The property must stay in the same bare trust structure
• The SMSF can’t access extra funds for renovations or other investments as part of the refinance

Lenders have strict criteria for SMSF lending, so refinancing isn’t always straightforward—but it is possible. At SMSF House, we assist with the compliance and documentation to ensure everything stays aligned with super laws.

Not in the traditional sense. Unlike personal property investing, SMSFs can’t release equity from one property to fund another purchase.

If your SMSF wants to buy another property, it would need to:

• Use available cash already in the fund, or
• Enter into a new Limited Recourse Borrowing Arrangement (LRBA) for the new asset

Each loan must be tied to a single asset or asset class—you can’t cross-collateralise or draw equity like you would outside of super.

You can access your SMSF savings once you meet a condition of release, with the most common being retirement after reaching your preservation age.

Here’s how your preservation age breaks down based on your birthdate:

But it’s not just about hitting that age. To retire and access your SMSF, you also need to be officially retired — meaning you’ve stopped working or have no intention of returning to work.

Other conditions of release include reaching age 65 (whether you’re still working or not), permanent incapacity, or terminal illness.

At SMSF House, we ensure your retirement withdrawals are compliant, tax-effective, and ATO-approved. So the Bank of Mum and Dad can call it a day and enjoy a cruise, the golf club membership, or that much-needed spicy marg.

Your SMSF can operate in two key phases: accumulation and pension. The difference comes down to whether you’re building your super or drawing from it in retirement—and how it’s taxed.

Accumulation phase

This is the “growing your super” stage.

• You (or your employer) are making contributions
• The fund is investing and building wealth
• Earnings are taxed at 15%
• Capital gains (on assets held >12 months) are taxed at 10%

Pension phase

This begins when you’ve met a condition of release (like retirement or turning 65), and start drawing a retirement income.

• The fund pays you a regular pension (income stream)
• Earnings on pension assets are tax-free
• There are minimum drawdown requirements based on your age

Some SMSFs run in both phases at the same time—part of the fund stays in accumulation, while the rest supports a pension. At SMSF House, we help structure your fund correctly, so your transition to pension phase is smooth, compliant, and as tax-effective as possible.

The answer depends on several factors — like how long you’ll be retired, your investment strategy, and whether your money is in accumulation or pension phase. But as a rough guide, many advisers suggest you’ll need around $1.5 to $2 million in super to generate $80,000 per year in retirement.

Here’s why:

• In retirement (pension) phase, your SMSF income is typically tax-free.
• If your investments generate a 5% return, you’d need around $1.6 million to sustainably draw $80,000 per year.
• If you plan to draw on both capital and income, you may need less upfront — but you’ll need to plan for longevity.

At SMSF House, we don’t give financial advice, but we can connect you with licensed professionals to help you plan your retirement and ensure your SMSF is structured to support your goals.

If you move overseas, your SMSF may be impacted by the ATO’s residency rules, which can affect whether your fund remains compliant and eligible for concessional tax treatment.

To meet the residency requirements, the fund must generally:

• Be established in Australia
• Have its central management and control ordinarily based in Australia
• Satisfy the active member test, which considers where contributions are made from

Spending significant time overseas can complicate these requirements. At SMSF House, we can help you understand the tax implications of an overseas move and how they may affect your SMSF’s compliance.

SMSFs offer a very different experience compared to industry and retail funds—because you’re in the driver’s seat.

Here’s a quick comparison:

If you separate or divorce, your SMSF can get a bit messy—especially if both partners are members of the same fund.

Superannuation is treated as property in a divorce, which means it can be split as part of a family law settlement. This might involve:

• Valuing the SMSF
• Splitting or rolling out part of one member’s balance
• Removing a member from the fund
• Updating trustees or directors

Because SMSFs are jointly managed, separating can raise issues around decision-making, control, and compliance—especially if communication breaks down.

At SMSF House, we don’t offer legal advice, but we can assist with the administrative side of things and work alongside your lawyer or adviser to ensure the fund stays compliant and the necessary changes are handled correctly.

When you die, your SMSF doesn’t automatically wind up—it continues to operate until your super balance is paid out to your beneficiaries or your estate.

What happens next depends on:

• Whether you’ve made a binding death benefit nomination
• Who your beneficiaries are (e.g. spouse, children, estate)
• The structure of your SMSF and whether there are other members involved

The remaining trustees or directors are responsible for managing the payment of your death benefit, in line with the super laws and your fund’s trust deed.

At SMSF House, we can help ensure your SMSF is set up to make this process smooth and compliant. While we don’t provide estate planning advice, we work closely with legal professionals and can connect you with someone who can help structure things properly for peace of mind.