Buying Property under Company Name, Self-Managed Super Fund or Trust
Not all property purchases are made by individuals. If you're planning to buy under a company name, through a self-managed super fund (SMSF), or via a trust, there are added layers of legal and financial complexity. These structures can offer tax or asset protection advantages — but they also come with strict rules, higher compliance costs, and potential impacts on stamp duty and loan eligibility.
We strongly recommend seeking guidance from a financial adviser or accountant before proceeding.
Buying Property under a Company Name
A company can buy property in its own name, often for commercial or investment purposes. This structure keeps ownership separate from personal assets, which may provide asset protection or tax flexibility for businesses.
Things to consider:
- Companies are not eligible for first home buyer grants or stamp duty exemptions
- Some lenders restrict or reduce borrowing limits for company purchases
- Company title purchases may attract higher ongoing tax obligations that differ from personal ownership
- You'll need to verify ASIC registration details and company resolutions when signing contracts
Buying Property through a Self-Managed Super Fund (SMSF)
An SMSF can invest in residential or commercial property, but there are strict ATO rules that apply.
Key restrictions include:
- The property must be solely for investment purposes — you or related parties cannot live in or use the property
- The purchase must comply with the fund's investment strategy
- If borrowing, the SMSF must use a limited recourse borrowing arrangement (LRBA) — not all lenders offer these, and the process can be complex
- All rent and expenses must be handled through the SMSF's accounts
Important: Stamp duty and capital gains tax still apply, and SMSF loans typically require larger deposits and higher interest rates.
Buying Property through a Trust
Trust structures — like discretionary (family) trusts or unit trusts — are commonly used by investors or families for asset protection, estate planning, or tax planning purposes.
Key considerations:
- Trusts can complicate borrowing; not all lenders accept them
- You'll need a valid trust deed and may be asked to provide a copy before signing contracts
- Some grants and concessions are not available to trusts (e.g. first home buyer exemptions or principal place of residence concessions)
- Trust income and tax distributions must follow the deed's rules and be managed annually with an accountant's help
State-Specific Nuances
NSW
Only the trustee of trusts and SMSFs can be registered on title — the names of the trusts do not appear on the title registration. When entering the contract, you must ensure that the correct entity is noted as the purchaser in the contract. You won't be eligible for residential concessions like first home buyer benefits under these entities.
QLD
Trusts cannot be named directly on the title — only trustees can hold the property "as trustee for" a nominated trust. As with other states, duty concessions are not generally available. Trusts must be clearly declared on contract execution.
VIC
Trusts cannot be named directly on the title — only trustees can hold the property "as trustee for" a nominated trust. When entering the contract, you must ensure that the correct entity is noted as the purchaser in the contract. This adds an extra legal step and makes compliance more complex. Like elsewhere, residential benefits do not apply to trusts or SMSFs.