Step 2: Setting Up Your SMSF Structure
Building the Foundation for Your Property Investment Journey
Establishing the right Self-Managed Super Fund (SMSF) structure is essential for successful property investment. A properly structured SMSF ensures compliance with superannuation regulations, simplifies asset management, and maximises investment efficiency.
At Finsap, we guide you through this process, ensuring your SMSF is set up correctly from the start—so you can focus on building your retirement wealth through strategic property investment.
Key Components of an SMSF Structure
To invest in property through an SMSF, you must establish several key structural elements. Each plays a crucial role in ensuring the legal, financial, and compliance requirements of your fund are met.
1. SMSF Trust Deed & Trustee Structure
As an SMSF trustee, you have direct control over your investment decisions. However, managing an SMSF comes with significant responsibilities.
Your SMSF begins with a legally binding trust deed, which outlines:
How the fund operates
The roles and responsibilities of the trustees
The investment and benefit payment rules
You must also decide on the trustee structure:
Trustee Type
Individual Trustees
Corporate Trustee
Description
Each SMSF member is personally a trustee.
A company acts as trustee, with members as directors.
Key Considerations for Property Investment
Suitable for small funds but requires all assets to be registered in individual names, making changes more complex.
Recommended for property investment due to greater asset protection, easier administration, and succession planning benefits.
Why We Recommend a Corporate Trustee for Property Investment
A corporate trustee structure is generally preferred for SMSFs investing in property because it:
Simplifies asset ownership – The property is held in the company name rather than multiple individuals.
Enhances succession planning – Easier to add or remove members without requiring asset transfers.
Provides better asset protection – Reduces personal liability risks for trustees.
Ensures clearer separation of personal & SMSF assets – A key requirement for compliance.
At Finsap, we work with legal professionals to ensure your trust deed and trustee structure align with your SMSF investment goals.
2. SMSF Bank Account Setup
An SMSF must have a dedicated bank account that is separate from personal finances. This account is used to:
Receive contributions and rollovers from existing super funds
Pay for fund expenses, such as compliance costs and investment-related fees
Collect rental income from investment properties
Tip: Your SMSF bank account must be set up in the fund’s name and comply with superannuation regulations.
We assist in selecting SMSF-friendly banking solutions with competitive fees and integration with accounting software for easier fund management.
3. Investment Strategy Documentation
Before purchasing property, your SMSF must have a written investment strategy. This document ensures the fund:
Has clear investment objectives aligned with member goals
Defines an asset allocation approach, including property as an asset class
Addresses diversification & liquidity risks, ensuring the fund can meet its obligations
Considers insurance needs for fund members
This strategy must be reviewed regularly to ensure it remains appropriate as market conditions and member circumstances change.
At Finsap, we help craft investment strategies that are both compliant and practical, ensuring your SMSF is well-positioned for property investment while meeting ATO and regulatory requirements.
4. Regulatory Compliance Setup
To be recognised as a complying super fund, your SMSF must be registered with the Australian Taxation Office (ATO) and meet superannuation law requirements.
Australian Business Number (ABN): Required to legally operate as an SMSF.
Tax File Number (TFN): Essential for tax and reporting purposes.
GST Registration (if applicable): Generally required if the SMSF has an annual turnover of more than $75,000 (relevant for commercial property investments).
Electronic Service Address (ESA): Required for receiving employer contributions and data exchange.
We handle the SMSF registration process in collaboration with your accountant and legal advisors, ensuring that all compliance requirements are met efficiently.
How Finsap Simplifies the Process
Setting up an SMSF for property investment can be complex, but Finsap makes it simple by providing:
Specialist Guidance – We handle technical aspects while keeping you informed.
Seamless Documentation Management – We assist in preparing and submitting all required paperwork.
Professional Coordination – We work directly with accountants, auditors, and legal experts to ensure your SMSF structure is compliant and investment-ready.
Education & Support – We ensure you fully understand your SMSF structure and its role in property investment.
With Finsap, you’ll have a fully compliant, investment-ready SMSF structure without unnecessary delays or complications.
Preparing for Property Acquisition
Once your SMSF structure is established, you’ll be ready to:
Roll over superannuation from your existing funds into your SMSF.
Start building your deposit through contributions and investment growth.
Develop a property acquisition plan, ensuring the timing aligns with your investment strategy.
Explore borrowing options using a Limited Recourse Borrowing Arrangement (LRBA) for property investment.
Ready to Build Your SMSF Foundation?
Setting up the right SMSF structure is critical for long-term success in property investment. At Finsap, we specialise in SMSF lending and can guide you through the entire setup and financing process.
Disclaimer: The information provided on this page is general in nature and does not constitute personal financial advice. Finsap specialises in SMSF lending and property finance solutions and does not provide financial or tax advice.
Before making any financial decisions, you should consider whether the information provided is appropriate for your personal circumstances, financial goals, and risk profile. We strongly recommend consulting a licensed financial adviser or tax specialist to ensure compliance with SMSF regulations.
