Can my SMSF invest in property development?

HomeInsights

Can my SMSF invest in property development?  


An SMSF can invest in property development if trustees ensure the investment complies with the rules. And, there are a lot of rules. A key is the sole purpose test. Trustees need to ensure the fund is maintained to provide benefits for retirement, ill health or death​. Breaches of this fundamental tenet are serious and include the loss of the fund’s concessional tax treatment and civil and criminal penalties.


By its nature property development is high risk and fund trustees need to ensure that the SMSF is not simply a handy cash-cow for a pipe dream, particularly when the developers are related parties.  

There are multiple ways an SMSF can invest in property development if the investment strategy of the fund allows:

  • Directly developing property
  • An ungeared unit trust or company (the parties can be related)
  • Investment in an unrelated entity
  • A joint venture


An SMSF can purchase land from an unrelated party and develop the property in its own right. Common issues that often arise include:




If your SMSF is not undertaking a property development project in its own right, there are a few ways for an SMSF to invest in property development projects:


Your Super. Your Way.

We provide strategic business and tax advisory, underpinned by our expertise in financial planning to ensure we develop financial structures that are smart and well considered.


CONTACT US CONTACT US


8 Aug

Planning For Your Retirement

WEBINAR - Registration Essential
8th August 2025 - 12:30 - 1:30.p.m

The best retirements are those planned well in advance. Because when it comes to designing the life you want, age should never be a limit. In this expert-led webinar, we’ll walk you through the essential strategies to help you create a financially secure and fulfilling retirement - on your terms.


READ MORE READ MORE
1 Aug

SMSF - Using Your Super To Invest In Property

WEBINAR - Registration Essential
1st August 2025 - 12:30 - 1:30.p.m

Thinking about using your super to invest in property? Join our expert-led webinar to explore how a Self-Managed Super Fund (SMSF) can help you build long-term wealth through property investment. 


READ MORE READ MORE
25 Jul

SMSF: Is It The Right Investment Strategy For You?

WEBINAR - Registration Essential
25th July 2025 - 12:30 - 1:30.p.m


Join our free webinar, SMSF: Is It the Right Investment Strategy for You?, to explore how a Self-Managed Super Fund can help you take control of your retirement in today’s changing economic landscape.


READ MORE READ MORE


Related News

4 Jun

Reduce financial pressure with downsizer contributions

To be eligible to make a downsizer contribution to your super, you must be aged 55 or older and have owned your home for at least 10 years prior to the sale.


READ MORE READ MORE
4 Jun

What can we learn from the world’s most accomplished investors?

The investment market volatility that kicked off in March 2025 has felt like a punch, particularly for those in or nearing retirement.


READ MORE READ MORE
3 Jun

Hardship Happens. What Matters is What You Do Next

Struggling with loan repayments? Discover the truth about financial hardship arrangements, how they impact your credit, and the proactive steps you can take to regain control. 


READ MORE READ MORE