Personal Residential Property Asset Acquisition for your SMSF

The question: Can our SMSF acquire a residential property from us personally? requires a follow-up question: How is the property used?

Before answering these questions, you will require an explanation of Business Real Property (BRP) which is defined under Section 66 of the Superannuation Industry (Supervision) Act 1993 as “any freehold or leasehold interest in real property where the property is used wholly and exclusively in one or more businesses.”

This definition hinges on use, not the type or zoning of the property, and the Australian Taxation Office (ATO) clarifies that even a property that looks ‘residential’ can qualify as BRP if it is genuinely used in the operation of a business. Conversely, a commercial property might not quality as BRP if it is partly used for private purposes.

Therefore, under section 66, a property’s eligibility as BRP depends entirely on its current use in a genuine business operation, not on its appearance or zoning.

If a property satisfies the BRP test, it can be acquired by an SMSF from a related party — provided the transaction occurs at market value.

This allows business owners to transfer premises used in their business into their SMSF, helping free up capital while retaining operational control through a lease arrangement.

However, if the property is not wholly and exclusively used in a business, section 66 prohibits the transfer, and a SMSF might risk breaching the Superannuation Industry (Supervision) Act 1993.

Section 66 Exemption - Examples

The exemption under Section 66 is tested at the time of acquisition. If a property is used, for example, by a doctor, accountant or dentist, 100 per cent of the time for their business with no residential purpose, then the property would be classified as BRP and may be acquired from a related party to a SMSF.

However, if, for example, a property is a working farm that has a farmhouse used residentially, then the farmhouse portion could be considered incidental, and the property may also be acquired from a related party to a SMSF.

Furthermore, a motel that has a manager’s quarters within the property could also be considered incidental, and the property may also be acquired from a related party to a SMSF.

Next Steps

If you are considering a property transaction involving a SMSF and a related party, it is essential to assess the property's current and intended use — not just its type or zoning. Would you like help evaluating a specific property scenario? Ask us at YML Super Solutions to look more closely at the exact details of a property’s use for your SMSF strategy.

How can YML help?

Talk to our YML Super Solutions Team today to see how YML Group can assist you with your SMSF. For more information, view our website and contact us on (02) 8383 4444 or by using our Contact Us page on our website.

Do you need help buying your perfect property?

What is a Buyer’s Agent?

A buyer’s agent, also known as a buyer’s advocate, is a licensed processional who represents the interests of property buyers. A buyer’s agent works exclusively with you, the purchaser, to help you identify, negotiate for and purchase property that fulfils your property-buying criteria.

Unlike a traditional real estate agent, a buyer’s agent does not work on behalf of the vendor (seller) of a property. S/he ensures that their clients are provided with a bespoke property search-and-find service.

Why use a Buyer’s Agent?

A buyer’s agent will work with you to ascertain your property-buying objectives, such as location, property type, budget, growth vs yield, investment vs owner-occupancy. Once a brief is established, a buyer’s agent will search for properties that match your brief, including any off-market options that are not publicly advertised.

Buyer’s agents have networks of contacts in the real estate industry. Their insights and research access can provide you with local market information, trends and risks, giving you an advantage in a competitive market. Operating across Australia, a buyer’s agent can also help you invest in property beyond your local area.

Advocating for you during the negotiation process, coordinating due diligence, managing inspections and reviewing documentation, a buyer’s agent provides their expertise and experience whilst saving you time and energy.

A buyer’s advocate is always in your corner until you have secured a property that aligns with your personal, business, lifestyle and/or investment needs.

What is the current state of the Australian Residential Housing Market?

Generally, in Australia today, residential property values continue to rise at a moderate pace, with the national dwelling value growth rising towards 5 per cent over recent months.

Property analysts had forecast moderate national growth throughout 2025, rather than a fast-rising boom, however supply remains constrained in many Australian regions which supports values and makes for a more competitive market for buyers.

Next Steps

YML Group can partner you with our trusted Property Buyer’s Agent associate to ensure a convenient, efficient and tailored approach to help you in your property search.

When you least expect it, our affiliated Property Buyer’s Agent could present to and secure for you the ideal property that aptly fits within your wealth-building strategy.

How can YML help?

Talk to our YML Chartered Accountants today to see how YML Group can assist you in your property search. For more information, view our website and contact us on (02) 8383 4400 or by using our Contact Us page on our website.

How YML Offshore Co-sourcing can work for your Business

YML Group offers offshoring and co-sourcing solutions to help Australian businesses reduce operational costs and scale efficiently without compromising quality or control. YML provides skilled offshore professionals who work as part of your company’s team, managed and supported by YML’s Australian systems and infrastructure with full accountability.

Specifically, co-sourcing is a hybrid model, a collaborative strategy, combining your existing in-house resources with an external service provider to manage certain functions. This mutual partnership enables your business to focus on its core operations while delegating skilled- and process-based tasks to trained offshore specialists.

Some examples of the types of specialists available to assist your business are:

Offshore Property Manager

An offshore Property Manager operates as an extension of a real estate or property management business in Australia.

Their responsibilities might include calling tenants regarding rent arrears, lease renewals, inspections and maintenance issues, as well as managing property databases and data entry in your property management software.

This setup enables your Australian property managers to focus on client relationships and business growth while an offshore Property Manager handles the day-to-day coordination and communication tasks.

Offshore Quality Engineer

An offshore Engineer supports relevant Australian businesses by ensuring consistent quality assurance processes and documentation.

Their responsibilities might include conducting remote compliance checks and process audits, providing data analysis, and using digital tools to monitor performance.

Australian businesses gain collaborative access to technical expertise while maintaining quality standards for their clients.

Offshore Administrative Support

An offshore administrative professional handles general office, finance, and customer service functions for businesses in Australia.

Their key responsibilities might include managing email correspondence, data entry and document preparation, processing invoices, preparing quotes and reconciliations, all under local, onshore supervision. Administrative staff can also specifically support HR and payroll functions.

Your Australian administrative staff are freed up to focus on clients and strategy due to improved efficiency from the streamlining of back-office tasks.  

Next Steps

YML Group can help you gain access to skilled professionals who will integrate seamlessly with your business’s operations, as part of your own team and in alignment with your business, delivering productivity and cost savings.

Our offshore co-sourcing service offers you operational control and is ideal for growing Australian businesses.

How can YML help?

Talk to our YML Business Services Team today to see how YML Group can assist you with offshoring and co-sourcing solutions. For more information, view our website and contact us on (02) 8383 4455 or by using our Contact Us page on our website.