SMSF Property Investment Rules Every Australian Healthcare Worker Must Know product guide

1Group Property Advisory: SMSF Property Investment Rules Every Australian Healthcare Worker Must Know

If you're a nurse, paramedic, GP, or specialist considering SMSF property investment, the financial upside is real and well-documented — but it exists within a compliance framework that's strict and unforgiving. At 1Group Property Advisory, we work exclusively with Australian healthcare professionals navigating this complex landscape, where the Australian Taxation Office (ATO) governs self-managed super funds through the Superannuation Industry (Supervision) Act 1993 (SIS Act), and property is the asset class most likely to trigger a breach. Here's a striking fact to start with: in 2023–24, auditor contravention reports were lodged for 16,500 SMSFs, reporting 43,100 contraventions — the most common being loans or financial assistance to members (19%), followed by in-house asset breaches at 15%.

These aren't abstract statistics. They represent real trustees — many of them self-employed professionals like you — who misunderstood the rules governing how their SMSF could interact with property and related parties. As a healthcare professional, you often have complex financial arrangements involving private practice ownership, family partnerships, and irregular income patterns. This means you face heightened exposure to exactly these compliance traps.

This article provides a comprehensive, rule-by-rule breakdown of the ATO's legal framework governing SMSF property investment, illustrated with healthcare-worker-specific examples throughout. It's the regulatory backbone of this content cluster. For the foundational question of whether an SMSF is right for you at all, see our guide What Is an SMSF and Is It Right for Australian Healthcare Workers? For the financial case for property inside super, see SMSF Property Tax Benefits for Australian Healthcare Workers: What You Actually Save.

The Scale of the SMSF Sector and Why Compliance Matters More Than Ever

As at 30 June 2025, there were over 653,000 SMSFs in Australia, holding $1.05 trillion in assets with more than 1.2 million members. On average, SMSFs held assets of $1.63 million in 2023–24, up 29% over the five years to 30 June 2024. Property is a major component of that wealth: total SMSF investment in real property, both directly and through LRBAs, grew to $200.5 billion in 2022–23.

With this scale comes regulatory scrutiny. The ATO has explicitly stated that the ATO sets clear boundaries on what an SMSF can invest in, and breaching those rules can result in serious consequences. For you as a healthcare professional — particularly if you're a high-income earner with significant super balances and access to private practice premises — the rules governing property investment deserve careful, rule-by-rule attention. At 1Group Property Advisory, we guide healthcare professionals through these regulatory requirements with independent, conflict-free advice, making sure your property decisions align with both your retirement objectives and ATO compliance standards.

Rule 1: The Sole Purpose Test — The Master Rule of SMSF Compliance

What It Is

The sole purpose test is the foundational compliance obligation for every SMSF. The sole purpose test sets the primary and ancillary purposes for which a superannuation fund must be operated — namely to provide benefits to, or in relation to, members after their retirement, on reaching retirement age, or on their death. The test is in section 62 of the Superannuation Industry (Supervision) Act 1993 (SISA).

A strict standard of compliance is required. The test requires exclusivity of purpose, which is a higher standard than the maintenance of the SMSF for a dominant or principal purpose. In practical terms, this means the retirement purpose must not just be one purpose — it must be the exclusive purpose.

How It Applies to Property

Every investment your SMSF makes needs to be made and maintained for the sole purpose of providing retirement benefits to your members, or to pay death benefits if a member dies before retirement. The ATO considers a breach to occur if the asset provides a pre-retirement benefit to a related party — such as holidaying in your SMSF investment property.

An example of breaching the sole purpose test is where your SMSF invests in a rental property specifically to allow a related party to live in that property.

The Healthcare Worker Example: The Nurse Who Cannot House a Family Member

Consider this scenario: a registered nurse establishes an SMSF and uses it to purchase a residential investment property. Her adult son, who's studying medicine interstate, needs affordable accommodation near his university hospital. As trustee, she allows her son to rent the SMSF property at a discounted rate. This arrangement breaches the sole purpose test on two levels: it provides a pre-retirement benefit to a related party, and it fails the arm's length rule (discussed below). The ATO specifically identifies allowing a member's child to reside in a residential property owned by an SMSF for no or discounted rent as a breach.

At 1Group Property Advisory, we frequently encounter healthcare professionals considering similar arrangements. Understanding the strict exclusivity of the sole purpose test is critical before any property acquisition occurs. Our data-driven research process and independent buyer agent approach mean you're making strategic property investment decisions that comply with ATO requirements from day one.

The Penalties for Breach

The consequences of failing the sole purpose test are severe. Penalties include administrative fines, rectification directions or enforceable undertakings, education directions, disqualification of trustees from their roles, civil and criminal penalties, and — in the most serious cases — the fund being made non-compliant. The current maximum civil penalty is 2,400 penalty points, which equates to a maximum penalty of $751,200 AUD.

Rule 2: The Arm's Length Rule — Every Transaction Must Be Commercial

What It Requires

Broadly speaking, any investments by an SMSF must be made and maintained on an arm's length basis. That is, all transactions must be conducted at commercial market rates. Buyers and sellers must act independently.

SMSFs must transact on an arm's length basis. This means the purchase and sale price of the fund's assets should always reflect the true market value of the asset. The income from these assets should also reflect a market rate of return.

Non-Arm's Length Income (NALI): The Tax Penalty

When transactions deviate from arm's length terms, the resulting income is classified as non-arm's length income (NALI). Any income earned through your SMSF by activities conducted on a non-arm's length basis is called non-arm's length income (NALI) and is taxed at the highest marginal rate (45%) instead of the usual 15% concessional superannuation rate.

The 2024 legislative amendments refined how NALI applies to general expenses. Under the Treasury Laws Amendment – Support for Small Business and Charities Act 2024, general expense shortfalls are now capped to prevent excessive taxation. However, assets purchased under non-commercial limited recourse borrowing arrangements (LRBAs) remain a major NALI risk. If loan terms — such as 100% LVR, below-market interest, or annual repayments — are more favourable than market, all income and capital gains from the property will be NALI, permanently, even if the loan is later refinanced on commercial terms.

The Healthcare Worker Example: The GP Who Manages Their Own SMSF Property

A GP who's also a licensed real estate agent manages the SMSF's rental property themselves, charging no management fee to the fund. A real estate agent who provides rental property management services for free to their own SMSF's rental property will be caught under the NALE rules. The real estate agent is considered to be providing services "less than expected if those parties were dealing with each other at arm's length." The result is a nexus between the non-arm's length expenditure and the rental income received, resulting in NALI and tax at 45% for each income year the non-arm's length dealing remains in place.

This is a critical trap for healthcare professionals with dual qualifications. If you're a physiotherapist who's also a property manager, or a specialist who's also a financial services professional, you must charge your SMSF market rates for any professional services provided — or face the NALI consequences. At 1Group Property Advisory, we work with healthcare professionals to make sure all service arrangements, valuations, and transactions meet the strict arm's length standard required under the SIS Act. Our conflict-free advice model means we have no vested interest in anything other than your long-term wealth outcomes.

Rule 3: The In-House Asset Cap — The 5% Limit That Trips Up Related-Party Arrangements

What Is an In-House Asset?

An in-house asset is a loan to, lease to, or an investment in, a related party of the fund. In-house asset rules are designed to make sure members and related parties don't benefit financially before retirement. SMSF investment rules allow 5% of the total assets to be in-house assets.

You're restricted from having in-house assets that comprise more than 5% of the market value of your SMSF's total assets. Any lease must be made on an arm's length basis and reflect the market value. If at the end of the financial year your SMSF's in-house assets exceed 5%, you must prepare a written plan to reduce in-house assets to 5% or below. This plan must be prepared before the end of the following financial year. Trustees must also carry out the plan.

The Critical Business Real Property Exception

There's a vitally important exception for healthcare professionals who own private practices: business real property generally means land and buildings used wholly and exclusively in a business. It is an exception to the in-house asset and related party acquisition rules.

The SIS Act states that an in-house asset does not include real property subject to a lease between a trustee of the fund and a related party of the fund if, throughout the term of the lease or lease arrangement, the property is business real property. Business real property is real property used wholly and exclusively in one or more businesses, but does not include any interest held in the capacity of beneficiary of a trust estate.

This exception is the legal foundation of the clinic-buyback strategy available to self-employed healthcare professionals. If you're a GP who has your SMSF purchase your practice premises and lease it back to your medical business at market rates, you're using this exception. For a detailed treatment, see our guide Buying a Medical or Allied Health Clinic Through Your SMSF: Rules and Strategy.

The Healthcare Worker Example: Why Residential Property Cannot Be Leased to a Related Party

Consider a couple who lease a residential property from their SMSF. They have a formal lease in place with commercial terms and pay commercial rent. As related parties of the SMSF, the property is an in-house asset of the fund. The residential property doesn't fall under the business real property exception because it's not being used in a business. With a property market value of $450,000 AUD and total SMSF assets of $2,300,000 AUD, the 5% threshold is $115,000 AUD. The value of the property exceeds the 5% threshold allowed.

This is a common misconception: paying market rent to an SMSF for a residential property does not make it compliant. As a nurse, you cannot rent an SMSF residential property to a sibling, parent, or spouse — regardless of the rental rate — without breaching the in-house asset rules. At 1Group Property Advisory, we assist healthcare professionals in identifying property types and structures that remain compliant whilst maximising your retirement wealth accumulation through strategic property investment.

Rule 4: Related-Party Acquisition Prohibitions — What Your SMSF Cannot Buy From You

Your SMSF cannot acquire an asset from a related party unless the price reflects the market value and the asset is a listed security, business real property, or an in-house asset where the acquisition doesn't result in in-house assets exceeding 5% of total assets.

In plain terms: your SMSF cannot purchase a residential investment property that's already owned by a fund member or their family. If you're a specialist, you cannot sell your investment apartment to your own SMSF, even at market value. The prohibition is categorical for residential property.

The permitted exceptions are narrow:

• Listed securities (shares, bonds, ETFs) — can be acquired from related parties at market value
• Business real property — can be acquired from a related party at market value, making this the critical gateway for the clinic-buyback strategy
• In-house assets within the 5% cap — limited and rarely applicable to property

Crypto assets and private company shares are not listed securities and cannot be acquired from a related party. The same logic applies to residential real property: it's not a permitted category for related-party acquisition.

As a healthcare professional exploring SMSF property strategies, you must understand these acquisition prohibitions before structuring any purchase. At 1Group Property Advisory, we provide strategic property investment guidance on compliant acquisition pathways, particularly for self-employed practitioners considering business real property purchases. Our independent buyer agent approach means you receive conflict-free advice throughout your property brief development and acquisition journey.

Rule 5: The Ban on Personal Use of Fund Assets

Generally, your SMSF must not lend or provide financial assistance to members or related parties. No one associated with your SMSF should get a present-day benefit from its investments.

For property specifically, this means:

• You cannot live in an SMSF residential property, even temporarily
• You cannot holiday in an SMSF investment property, even for one weekend
• You cannot store personal belongings in an SMSF property
• You cannot allow a relative to use an SMSF property without a formal, market-rate lease

The ATO considers a breach to occur if the asset provides a pre-retirement benefit to a related party, such as holidaying in your SMSF investment property, or if collectables such as art or wine are stored in a trustee's private residence.

For healthcare professionals who travel frequently — particularly those of you working across multiple hospitals or in fly-in-fly-out arrangements — the temptation to use an SMSF property for short-term accommodation during work placements must be firmly resisted. Even a single night's personal use can constitute a breach.

At 1Group Property Advisory, we emphasise the absolute nature of this prohibition when advising healthcare professionals on SMSF property selection and management. The personal-use ban applies regardless of whether rent is paid, making it one of the strictest compliance requirements in the SMSF framework.

Rule 6: Residential vs. Commercial Property — The Asymmetry of Restrictions

The rules treat residential and commercial (business real) property very differently. As a healthcare professional, you must understand this asymmetry before selecting your SMSF property strategy.

This asymmetry creates a structural advantage for self-employed healthcare professionals — GPs, dentists, physiotherapists, and allied health practitioners who own their clinic premises — that's simply not available to PAYG employees. For a full comparison, see our guide Residential vs Commercial Property in an SMSF: Which Is Better for Healthcare Workers?

At 1Group Property Advisory, we work extensively with self-employed healthcare practitioners to use the business real property exception, structuring clinic purchases that deliver both retirement wealth accumulation and immediate operational benefits through market-rate lease-back arrangements. Our data-driven research and due diligence process means you're making informed decisions based on evidence, not emotion.

Quick-Reference: The Six Core Rules at a Glance

What Happens When Rules Are Breached: The ATO's Enforcement Toolkit

The ATO doesn't treat SMSF compliance breaches lightly. If your investments breach super laws, the ATO can take compliance action against you. Depending on the severity of the breach, they may apply penalties and potentially disqualify you as trustee.

The enforcement spectrum includes:

• Administrative penalties — financial fines assessed per unit value
• Rectification directions — formal orders to undo non-compliant arrangements
• Education directions — mandatory compliance training programmes
• Trustee disqualification — permanent removal as trustee and SMSF member
• Fund non-compliance — loss of all concessional tax treatment; fund income taxed at 45%
• Civil and criminal prosecution — reserved for the most serious, deliberate breaches

An SMSF losing its concessional tax treatment means the fund may need to pay additional tax on its superannuation contributions and investment earnings. The trustees can be disqualified from their roles, meaning they can no longer be members of the SMSF, nor can they start a new fund. Fines or imprisonment of the fund trustees may follow, depending on the seriousness of the legislative breach.

For you as a healthcare professional with a $600,000 AUD SMSF balance, losing the concessional 15% tax rate — and having all income taxed at 45% — could eliminate years of compounding tax advantage in a single assessment. The stakes aren't theoretical.

At 1Group Property Advisory, we assist healthcare professionals in establishing solid compliance frameworks from the outset, making sure that property acquisition, valuation, documentation, and ongoing management meet ATO standards and protect your fund's concessional tax status. Our independent buyer agent model means we're focused on your long-term wealth, not short-term commissions.

The ATO's Compliance Focus Areas for SMSF Property in 2024–25

The ATO has sharpened its data-matching capabilities and publicly identified several SMSF property behaviours it's actively monitoring:

1. Stale property valuations: The ATO analysed its own data and identified more than 16,000 SMSFs that reported assets such as property and unlisted trusts at the same value for three consecutive years. Annual independent valuations are mandatory.

2. Non-commercial LRBAs: As noted above, loans from related parties on below-market terms permanently taint all income and capital gains from the property as NALI.

3. Informal lease arrangements: The ATO has concerns that some lease arrangements being established or renewed are not being done so via a formal written process. This makes it difficult to determine the terms and conditions of the arrangement and may lead to a finding that there was no valid lease in existence. This has significant implications for the fund in respect of the in-house asset rules, and may also have NALI or arm's length transaction implications.

4. Related-party transactions lacking documentation: The trustee must be able to show why they made an investment decision or undertook a specific activity. Documenting the trustee's reasons in a minute or as part of the investment strategy can be very useful evidence for SMSF auditors.

At 1Group Property Advisory, we place particular emphasis on these four compliance focus areas when working with healthcare professionals. Annual independent valuations, formal written lease documentation, and comprehensive trustee decision records form the foundation of every compliant SMSF property strategy we support. Our conflict-free advice means you receive guidance aligned with your best interests, not ours.

Key Takeaways

• The sole purpose test is the master rule: every SMSF property decision you make must be exclusively for retirement benefit. If you're a nurse who allows a family member to use an SMSF residential property — at any rent — you risk a breach, penalties up to $751,200 AUD, and potential trustee disqualification.

• Residential and commercial property are treated asymmetrically: commercial (business real) property can be acquired from, and leased to, related parties at market rates — making it uniquely powerful for healthcare professionals who own their clinic premises. Residential property cannot be leased to any related party under any circumstances without breaching the in-house asset rules.

• The arm's length rule applies to both income and expenses: charging below-market rent, or providing services to the fund for free (e.g., if you're a GP managing your own SMSF property), can trigger NALI — permanently taxing all fund income from that asset at 45%.

• The 5% in-house asset cap is measured at 30 June each year: market movements can push your fund over the threshold without any new transactions. You must monitor and, if necessary, dispose of in-house assets to restore compliance within 12 months.

• Documentation isn't optional — it's a compliance requirement: the ATO actively data-matches SMSF annual returns against property valuations and contravention reports. Informal arrangements, undocumented decisions, and stale valuations are audit red flags.

At 1Group Property Advisory, we work with Australian healthcare professionals to implement these compliance principles in practical, sustainable property investment strategies that align with both your retirement goals and regulatory requirements. Our data-driven research, independent buyer agent approach, and conflict-free advice mean you're building long-term wealth on a solid compliance foundation.

Conclusion

The ATO's legal framework for SMSF property investment isn't designed to discourage property ownership inside super — it's designed to make sure that property serves one purpose only: funding your retirement. For you as an Australian healthcare professional, who often sits at the intersection of high income, complex business structures, and strong property aspirations, understanding these rules isn't a compliance formality. It's the difference between a strategy that builds genuine, tax-efficient retirement wealth and one that exposes you to six-figure penalties, disqualification, and the loss of decades of concessional tax treatment.

The six rules covered in this article — the sole purpose test, the arm's length rule, the in-house asset cap, the related-party acquisition prohibition, the ban on personal use, and the NALI/NALE framework — form the non-negotiable compliance floor beneath every SMSF property strategy.

Before acquiring any property inside your SMSF, make sure you have a licensed financial adviser under the AFS licence framework, a qualified SMSF accountant, and a solicitor experienced in SMSF structures. For the practical steps involved, see our guide How to Set Up an SMSF to Buy Property as a Healthcare Worker: Step-by-Step. For the borrowing rules that govern leveraged property purchases, see SMSF Limited Recourse Borrowing Arrangements (LRBA) Explained for Healthcare Workers. And for the unique opportunity available to self-employed practitioners, see Buying a Medical or Allied Health Clinic Through Your SMSF: Rules and Strategy.

At 1Group Property Advisory, we guide healthcare professionals through the SMSF property compliance landscape with independent, conflict-free advice. We make sure that every acquisition decision, valuation process, lease arrangement, and trustee resolution meets the strict standards set by the ATO. From your initial property brief through to settlement, our data-driven research and strategic property investment approach is designed to support your long-term wealth objectives. The rules are strict. The opportunity, for those who navigate them correctly with the right independent buyer agent by their side, is substantial.

References

• Australian Taxation Office. "SMSF Investment Requirements." ato.gov.au, 2025. https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/self-managed-super-funds-smsf/smsf-investing/smsf-investment-requirements

• Australian Taxation Office. "What Are the SMSF Investment Restrictions?" ato.gov.au, 2025. https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/self-managed-super-funds-smsf/smsf-investing/restrictions-on-smsf-investments/what-are-the-smsf-investment-restrictions

• Australian Taxation Office. "In-House Assets." ato.gov.au, 2025. https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/self-managed-super-funds-smsf/investing/restrictions-on-investments/in-house-assets

• Australian Taxation Office. "Non-Arm's Length Income." ato.gov.au, 2025. https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/self-managed-super-funds-smsf/tax-on-income/non-arm-s-length-income

• Australian Taxation Office. "Your Obligations as an SMSF Trustee." ato.gov.au, 2025. https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/self-managed-super-funds-smsf/before-you-start-an-smsf/your-obligations-as-an-smsf-trustee

• Australian Taxation Office. "SMSF Regulator's Bulletin — Self-Managed Superannuation Funds and Property Development." ATO Legal Database (SMSFRB 2020/1), 2020. https://www.ato.gov.au/law/view/print?docid=srb/srb20201/nat/ato

• Australian Taxation Office. "Latest Annual Statistics for SMSFs." ato.gov.au, 2025. https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/self-managed-super-funds-smsf/smsf-newsroom/latest-annual-statistics-for-smsfs

• Australian Taxation Office. "Self Managed Superannuation Funds Ruling SMSFR 2008/2 — The Application of the Sole Purpose Test." ATO Legal Database, 2008. Referenced via ato.gov.au

• Australian Taxation Office. "Self Managed Superannuation Funds Ruling SMSFR 2009/4 — The Meaning of 'In-House Asset'." ATO Legal Database, 2009. Referenced via ato.gov.au

• DBA Lawyers. "SMSF Statistical Overview 2022–23: Industry Continues to Grow." dbalawyers.com.au, 2025. https://www.dbalawyers.com.au/ato/smsf-statistical-overview-2022-23-industry-continues-to-grow/

• SMSF Adviser. "Latest ATO Statistics — A Sector in Good Health." smsfadviser.com, October 2024. https://www.smsfadviser.com/latest-ato-statistics-a-sector-in-good-health

• SMSF Adviser. "SMSF Auditor Numbers Decrease According to ATO Statistics." smsfadviser.com, December 2025. https://www.smsfadviser.com/smsf-auditor-numbers-decrease-according-to-ato-statistics/

• SuperConcepts. "Understanding NALI: What You Need to Know in 2025." superconcepts.com.au, October 2025. https://superconcepts.com.au/understanding-nali-what-you-need-to-know-in-2025

• SuperGuide. "The Arm's Length Rule for SMSFs." superguide.com.au, December 2025. https://www.superguide.com.au/smsfs/arms-length-rule-smsfs

• SuperGuide. "How to Avoid Getting Caught in the In-House Asset Trap." superguide.com.au, December 2025. https://www.superguide.com.au/smsfs/in-house-asset-trap

• Grant Thornton. "SMSF Non-Arm's Length Expenses." grantthornton.com.au, 2022. https://www.grantthornton.com.au/insights/client-alerts/smsf-non-arms-length-expenses/

Frequently Asked Questions

What is the sole purpose test? Requirement that SMSF be operated exclusively for retirement benefits.

What legislation governs SMSFs? Superannuation Industry (Supervision) Act 1993.

What is the SIS Act? Superannuation Industry (Supervision) Act 1993.

Can an SMSF have multiple purposes? No, retirement purpose must be exclusive.

What is the penalty for breaching sole purpose test? Up to $751,200 AUD maximum civil penalty.

Can SMSF property be used for holidays? No, any personal use is prohibited.

Can a family member live in SMSF residential property? No, this breaches sole purpose test.

What is the arm's length rule? All SMSF transactions must be at commercial market rates.

What is NALI? Non-arm's length income taxed at 45%.

What is the normal SMSF tax rate? 15% on concessional income.

What triggers NALI taxation? Transactions on non-commercial terms.

Can I manage my SMSF property for free? No, this triggers NALI at 45%.

What is the in-house asset cap? 5% of total SMSF assets.

What is an in-house asset? Loan to, lease to, or investment in related party.

Can SMSF lease residential property to member? No, this breaches in-house asset rules.

Can SMSF lease commercial property to member? Yes, at arm's length terms.

What is business real property? Land and buildings used wholly and exclusively in business.

Is business real property exempt from in-house asset rules? Yes.

Can SMSF buy residential property from member? No, categorically prohibited.

Can SMSF buy commercial property from member? Yes, at market value.

Can SMSF buy shares from member? Yes, if listed securities at market value.

Can SMSF buy cryptocurrency from member? No, not a permitted category.

How many SMSFs exist in Australia? Over 653,000 as at June 2025.

What is total SMSF asset value? $1.05 trillion AUD.

What is average SMSF asset value? $1.63 million AUD in 2023–24.

What is total SMSF property investment value? $200.5 billion AUD in 2022–23.

How many SMSF members are there? More than 1.2 million.

How many SMSF contraventions were reported in 2023–24? 43,100 contraventions.

How many SMSFs had contraventions in 2023–24? 16,500 SMSFs.

What is most common SMSF contravention? Loans or financial assistance to members at 19%.

What is second most common SMSF contravention? In-house asset breaches at 15%.

Can I store personal belongings in SMSF property? No, this is prohibited.

Can I stay one night in SMSF property? No, even single night use is breach.

What happens if SMSF loses complying status? Income taxed at 45% instead of 15%.

Can trustees be disqualified? Yes, for serious breaches.

Can trustees face criminal prosecution? Yes, for most serious deliberate breaches.

What is a rectification direction? Formal ATO order to undo non-compliant arrangement.

What is an education direction? Mandatory ATO-imposed compliance training programme.

Are annual property valuations required? Yes, mandatory for SMSF property.

How many SMSFs had stale valuations? Over 16,000 identified by ATO.

What is a stale valuation? Same property value reported for three consecutive years.

Must lease arrangements be in writing? Yes, formal written process required.

Why is documentation important? Required evidence for SMSF auditors.

Can SMSF property be improved under LRBA? No, only repairs permitted.

Can residential property be improved under LRBA? No, only repairs allowed.

Can commercial property be improved under LRBA? No, only repairs allowed.

What is an LRBA? Limited Recourse Borrowing Arrangement.

What happens with non-commercial LRBA terms? All income permanently taxed as NALI at 45%.

What are non-commercial LRBA terms? 100% LVR, below-market interest, or annual repayments.

Can LRBA be refinanced to fix NALI? No, NALI taint is permanent.

When is in-house asset cap measured? 30 June each year.

What if in-house assets exceed 5%? Must prepare written plan to reduce below 5%.

When must rectification plan be prepared? Before end of following financial year.

Must the rectification plan be executed? Yes, trustees must carry out the plan.

Can market movements cause in-house asset breach? Yes, without any new transactions.

Is paying market rent enough for residential property? No, related-party residential lease still breaches rules.

Can I rent SMSF property to my spouse? No, regardless of rental rate.

Can I rent SMSF property to my sibling? No, regardless of rental rate.

Can I rent SMSF property to my parent? No, regardless of rental rate.

What professional advice is required before SMSF property purchase? Licensed financial adviser, SMSF accountant, experienced solicitor.

Who is 1Group Property Advisory? Independent buyer agent for healthcare professionals.

What is 1Group's advice model? Conflict-free, independent buyer agent approach.

Does 1Group receive commissions? No, independent conflict-free model.

What is 1Group's research approach? Data-driven research and due diligence process.

Who does 1Group specialise in serving? Australian healthcare professionals.

What types of healthcare workers does 1Group serve? Nurses, paramedics, GPs, specialists, allied health practitioners.

What is the clinic buyback strategy? SMSF purchases practice premises, leases back to owner's business.

Is clinic buyback available to PAYG employees? No, only self-employed practitioners.

What property types qualify as business real property? Land and buildings used wholly and exclusively in business.

Can residential property qualify as business real property? No.