SMSF Accounting & Property Loans — One Team, Full Compliance

Yes. Every SMSF property purchase requires both an SMSF-experienced accountant and a mortgage broker (Credit Representative authorised under an Australian Credit Licence) who understands limited recourse borrowing arrangements (LRBAs). The accountant ensures compliance with SIS Act section 67A and trustee duties; the broker structures the LRBA correctly with a bare trustee. At Eternity Group, both roles sit under one roof, removing the coordination risk that causes most SMSF compliance failures.

An SMSF property loan must be a limited recourse borrowing arrangement (LRBA). The property is held by a separate bare trust until the loan is repaid; the lender’s recourse is limited to that single property. Loan-to-value ratios are typically capped at 70–80% for residential. The SMSF deed must permit borrowing, and the asset must be a single acquirable asset. We coordinate both sides of the transaction.

An LRBA is the only legal structure under which an SMSF can borrow money to buy an investment asset (typically property). The borrowed funds purchase a single acquirable asset held in a separate bare trust. If the SMSF defaults, the lender can only claim that asset — not other SMSF assets. LRBAs are governed by section 67A of the Superannuation Industry (Supervision) Act 1993.

Yes, provided your SMSF deed permits borrowing, the property meets the sole purpose test, and the loan is structured as a compliant LRBA. The SMSF cannot buy from or rent to related parties for residential property. Commercial property may be acquired from or leased to related parties at market rates. We confirm eligibility at the consultation stage before any application starts.

Rental income inside an SMSF is taxed at 15% (or 0% in pension phase). Capital gains on sale are taxed at 10% if the property is held more than 12 months (or 0% in pension phase). Mortgage interest is deductible. Depreciation is claimable. Personal use is prohibited. We model the full after-tax position before recommending an SMSF property strategy.

Every SMSF must be audited annually by an ASIC-registered SMSF auditor before the SMSF annual return is lodged. The auditor must be external to the SMSF — your tax accountant cannot also be your SMSF auditor for the same fund. We coordinate audit on your behalf with a panel of registered SMSF auditors as part of our SMSF compliance package.

It depends entirely on your personal circumstances — your marginal tax rate, cash flow, contribution caps, existing debt position, retirement timeframe and objectives. Salary-sacrifice (concessional) contributions are generally taxed at 15% inside super rather than at your marginal tax rate, and concessional contribution caps apply and are indexed each year, so confirm the current cap for the relevant year. Whether prioritising super or extra mortgage repayments suits you is a personal financial product decision. Eternity Group can help with the accounting and tax context and coordinate the moving parts, but we do not provide personal financial product advice unless separately licensed or authorised — for a recommendation tailored to your situation, speak with a licensed financial adviser.

The superannuation regulations require an SMSF’s assets to be reported at market value as at 30 June each year, and the fund’s auditor must be able to verify how each valuation was reached. Listed shares and cash are straightforward; property, unlisted investments and collectables need objective supporting evidence such as a recent appraisal, comparable sales or an independent valuation. We identify which assets need fresh valuation evidence each year and request it early, so the audit is not held up near the lodgement deadline.

Trustees must keep accurate accounting records, annual financial statements, trustee minutes and decisions, member reports and copies of lodged returns. Under the SIS Act, accounting records are generally kept for at least five years, and minutes, trustee decisions and trustee declarations for at least ten. We maintain the working files as part of the annual engagement, but the legal obligation to keep proper records always remains with the trustees.

Full annual compliance (return, financial statements, member statements, trustee minutes, audit coordination), SMSF establishment if needed, investment strategy documentation, contribution and pension processing, and SMSF property loan structuring if you’re buying property. From $3,300 incl. GST annually. In most SMSF lending scenarios, the lender pays broker commission on settlement — remuneration is disclosed in our Credit Guide.