| Employer super contributions | |
| Net rental income | |
| Total income in | |
| Required loan repayment (P&I) | |
| Property expenses | |
| SMSF admin / audit / ASIC | |
| Total out | |
| Extra repayment (optional — from surplus) |
| Year | Opening balance | Repayments | Interest | Principal | Closing balance |
|---|
| Year | Kamesh age | Property value | Loan balance | Equity | Market rent (yr) |
|---|
Two paths for the same starting balance. Path A leaves it invested in your existing super, growing at the assumed return for the clients' chosen balanced option. Path B puts it toward the $ SMSF property; Path B's worth is the property value less the loan still owing. The projection starts at completion in 2027.
| Year | Path A - super only | Property value | Loan balance | Path B - equity | Advantage (B − A) |
|---|
The SMSF, the bare trust and all fund compliance must be set up and administered through Just Super, the specialist SMSF provider; the borrowing structure cannot proceed without them. Here is who does what, in order:
Kamesh & Abhie as members / trustees - established via Just Super
A separate trust that legally holds the property title until the loan is repaid
610/42 Moray Street, Southbank VIC 3006 - held for the benefit of the SMSF
Lender's claim is limited to this property only - your other SMSF assets are protected
The Treasury Laws Amendment (Tax Reform No. 1) Act 2026 (Cth) received Royal Assent on 26 June 2026. From 10 August 2026, SMSFs will no longer be able to enter new limited recourse borrowing arrangements (LRBAs) to purchase residential property under the law as it currently stands. This does not affect a fund that already holds a residential LRBA.
| Royal Assent | 26 June 2026 |
| Ban commences | 10 August 2026 |
| Binding contract needed by | 9 August 2026 |
The legislation itself
Schedule 5, item 2 of the Act confirms an existing arrangement stays covered where:
"the related asset is acquired under an arrangement entered into before that commencement (even if the settlement for the acquisition of the asset happens after that commencement)."
In short: it is the date the contract was entered into that matters, not the settlement date.
Read the full legislationWhat "binding" means: the contract must be legally binding on both buyer and seller, not just signed by one side - in the eastern states that is exchange of contracts, and in WA it is when an offer and acceptance is accepted and communicated. A conditional contract (for example, subject to finance) still counts; it is the date it was entered into that matters.