SMSF (Self Managed Super Fund)

A Self Managed Super Fund is a private superannuation fund you run yourself (with up to six members), regulated by the ATO. SMSFs can hold residential or commercial investment property. Borrowing via a Limited Recourse Borrowing Arrangement (LRBA) is still available for commercial property, but the 2026 tax reform legislation bans new LRBAs for residential property from 10 August 2026 - existing residential loans (and contracts exchanged before that date) are grandfathered, and buying residential property outright with fund cash is still allowed. The tax appeal is huge: rental income inside super is taxed at 15% during the accumulation phase and 0% in pension phase, and the CGT discount is one-third (so 10% effective tax on long-held gains in accumulation). The downside is complexity: trustees can't live in the property, can't rent it to family at non-arm's-length rates, can't use SMSF funds to renovate beyond limited repairs, and audit + admin fees run several thousand a year.