From 10 August 2026, SMSFs generally cannot borrow under a Limited Recourse Borrowing Arrangement (LRBA) to acquire residential property.
Borrowing remains available for eligible business real property, including commercial, industrial and mixed-use properties used wholly and exclusively in one or more businesses.
When an SMSF acquires eligible business real property using a loan, the property is generally purchased through a Property Custodian Trust, more commonly known as a Bare Trust.
We can prepare all documentation required to establish the Bare Trust.
Most lenders require the trustee of the Bare Trust to be a company. If your SMSF already has a corporate trustee, that company cannot also act as the Bare Trust trustee. A completely separate company is required.
Our once-off fee to establish the Bare Trust and the company that will act as trustee of the Bare Trust is $1,760 including GST.
This fee includes:
If you're purchasing eligible business real property through your SMSF using an LRBA, we can prepare the Bare Trust documentation and establish the company that will act as trustee.
