Buying Property Through Your SMSF? Can you BARE to trust it? (Bare Trust Deed)

BY GUEST INDUSTRY EXPERT ANNE V. | Principal SMSF Lawyer

(Guest industry expert contributions are educational in nature and do not constitute advice. Contributor participation does not imply endorsement or preferred referral status.)

Investing in property through your Self-Managed Super Fund (SMSF) can be a smart way to build your retirement portfolio, but it’s also an area where one small paperwork error can lead to major tax and duty consequences.

At our law firm, we’ve helped countless Australians buy property through their SMSF across Western Australia, New South Wales, Victoria and Queensland. Our team works closely with your accountants and tax advisors to ensure that every bare trust deed and supporting document is carefully prepared, dated and executed—helping to avoid costly mistakes like double stamp duty.

Whether you’re exploring your first SMSF property investment or need a bare trust structure reviewed, we guide you through every step from contract review to settlement, ensuring your transaction is smooth, compliant and stress-free.

What You Should Know About Bare Trusts

A bare trust is a simple trust structure holding property for the benefit of others, often used when an SMSF buys real estate using borrowed funds under a Limited Recourse Borrowing Arrangement (LRBA) that limits any loan default to the specific property being purchased.

But one of the most common and costly errors we’ve seen occurs when the bare trust deed is dated incorrectly—this mistake can trigger double stamp duty or other compliance issues.

When Do You Need to Date a Bare Trust Deed?

The requirements for dating bare trust deeds vary from state to state. Below is a helpful guide:

State	When it should be dated?
Queensland	Before the Contract Date
New South Wales	After the Contract Date
Australian Capital Territory	After the Contract Date
Victoria	After the Contract Date but before Completion
Tasmania	After the Contract Date
South Australia	After the Contract Date but before Completion
Western Australia	After the Contract Date
Northern Territory	Before the Contract Date

Getting your bare trust structure correct is not a detail but a safeguard.

For any SMSF property investment, aligning your legal, financial and accounting requirements early can mean the difference between a seamless, compliant purchase, and costly delays, unnecessary taxes or duties. If you’re unsure whether your trust deed is dated correctly, you should contact a qualified legal professional for assistance and advice.

ABOUT THE AUTHOR:

Anne V. contributes industry perspectives on legal considerations relevant to SMSFs and property. Anne is the Principal of an established five-star rated law firm. She has over 12 years of experience in family, property, commercial, transaction, and tax law. Her commentary is provided for educational purposes and does not constitute personal advice or recommendation. Explore your SMSF options >

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(GENERAL INFORMATION ONLY)

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DISCLAIMER:  Guest Industry Expert contributions are educational in nature and do not constitute advice. Contributor participation does not imply endorsement or preferred referral status. The views and opinions expressed in this article are those of the guest expert and do not necessarily reflect the views of the SMSF Intelligence team, its publisher, owners or its representatives and partners. No guarantee is given as to the accuracy, completeness, or timeliness of the content, and we do not accept any liability for loss or damage arising from reliance on the information contained in this article or any linked materials. This article is published for general information and educational purposes only and should not be considered financial, legal, tax, or investment advice. It has been prepared without taking into account your personal objectives, financial situation, or needs. Before making any decisions based on this content, you should consider its appropriateness in light of your circumstances and seek advice from a qualified professional. We do not provide financial, taxation, or legal advice.