SMSF
Last reviewed 13 June 2026 by Nick Lim, finance broker (FBAA).
SMSF, a self-managed super fund, is a private superannuation fund run by its members as trustees, regulated by the ATO. An SMSF can borrow to buy property only through a limited recourse borrowing arrangement (LRBA), which is a common way for medical and dental practices to buy the rooms they operate from. Lenders assess an SMSF loan on the fund's contributions and rent, and usually require a corporate trustee and personal guarantees.
Why SMSF Matters
An SMSF lets a practice own its premises inside super, but the borrowing rules are strict and specialised.
- Private super fund run by member trustees
- Regulated by the ATO
- Can borrow only via a limited recourse arrangement
- Common for buying practice rooms
- Needs a corporate trustee and guarantees
Common Features of SMSF
- Members are also trustees
- Limited recourse borrowing for property
- Lower LVR than standard property loans
- Assessed on contributions and rent
- Strict compliance and audit rules
Official reference: ato.gov.au
What is an SMSF?
A self-managed super fund run by its members as trustees and regulated by the ATO.
Can an SMSF borrow to buy property?
Yes, but only through a limited recourse borrowing arrangement (LRBA) with strict rules.
Why do practices use an SMSF?
To own the rooms they work from inside super, with rent paid by the practice to the fund.
What LVR can an SMSF loan reach?
Usually lower than a standard loan, and it needs a corporate trustee and personal guarantees.
Who regulates SMSFs?
The ATO regulates self-managed super funds, including their borrowing and compliance.