Is it better to buy an investment property through an SMSF or personally?

It depends on your marginal tax rate, the property's cashflow, the holding period and your retirement timeline. SMSFs pay 15% on rental income and 10% effective CGT (after the one-third discount) in accumulation phase, and zero in pension phase. Personal ownership stacks rental income on your salary at marginal rates up to 47%. For high-income earners buying a long-hold, growth-focused property and planning to sell in retirement, the SMSF route often wins. For lower incomes leaning on negative gearing, personal often wins. The calculator runs your specific numbers and shows the exact break-even year.

What is the SMSF one-third CGT discount?

An SMSF in accumulation phase pays tax at 15% but gets a one-third discount on capital gains on assets held longer than 12 months. The effective CGT rate ends up at 10% on the nominal gain. In pension phase the SMSF pays zero CGT. Personal ownership gets a 50% discount but at marginal rates up to 47%, so the headline saving is smaller than it looks for higher earners.

What is Division 293 tax?

A 15% additional tax on concessional super contributions for individuals whose combined income exceeds $250,000. Effectively it pushes the contribution tax rate from 15% to 30% for high earners. The calculator handles it symmetrically across both scenarios.

Can my SMSF borrow to buy property?

Yes, via a Limited Recourse Borrowing Arrangement. SMSF loans typically have higher rates (around 1% above retail), lower LVRs (60% to 70%), and stricter servicing. The calculator models full P&I amortisation or interest-only based on your inputs.

What costs are unique to running an SMSF?

Annual admin (audit, tax, ATO levy, software) usually $1,500 to $3,500. Setup of the fund and bare trust if borrowing runs $2,000 to $4,000 upfront. The calculator captures the recurring annual cost as an input so the comparison is not flattered by ignoring overhead.

What is the break-even year?

The year at which the SMSF scenario's cumulative after-tax position overtakes the personal scenario, or vice versa. The personal route often leads in early years (negative gearing, no SMSF overhead) but the SMSF can catch up later because of the 15% rental tax rate and the eventual move into the 10% or zero CGT environment.

SMSF or personal? See which path wins for your property.

Full FY 2025-26 Australian tax stack: marginal rates, Medicare levy, Division 293, super contribution caps, the 1/3 SMSF CGT discount and the 50% personal CGT discount. Year by year cashflow, break-even analysis, and the cumulative wealth gap at sale.

Full ATO stack

Marginal, MLS, Div 293

Break-even year

When SMSF overtakes personal

CGT at sale

50% vs 1/3 vs pension 0%

Year-by-year

Cashflow + cumulative wealth

How this is different

Most SMSF property calculators flat-line year 1 outcomes and extrapolate. Presm iterates the entire holding period for both scenarios, applies rent growth, cost growth and salary growth correctly, mirrors Division 293 on both sides, models the LRBA loan year by year, and exits with the right CGT regime (50% personal, 1/3 SMSF accumulation, or zero in pension). The numbers move with you, not against a frozen baseline.

What the calculator covers

SMSF and personal side by side

Same property, same growth assumptions, both tax stacks. The headline number is the difference in cumulative after-tax wealth at the year you choose to sell.

Full Australian tax stack

Marginal rates, Medicare levy + low-income threshold phase-in, Medicare Levy Surcharge by family status, Division 293, super concessional cap, all current FY 2025-26.

Break-even year + crossover detection

Most SMSF builds lose early then win late. The tool finds the exact year the cumulative position flips so you know the minimum holding period that justifies the structure.

Real LRBA loan modelling

Limited Recourse Borrowing Arrangement with proper P&I amortisation or interest-only, your loan term, your rate. Cashflow drag and interest deductibility flow into the comparison.

How SMSF property investing works in Australia

A self-managed super fund can buy investment property directly, with or without borrowing. Rental income is taxed at 15% inside the fund (zero in pension phase). Capital gains on assets held longer than 12 months attract a one-third discount, producing a 10% effective CGT rate in accumulation and zero in pension. Compare that to personal ownership where rental income stacks on your salary at marginal rates of up to 47% and capital gains attract a 50% discount but at your marginal rate.

SMSFs that borrow do so under a Limited Recourse Borrowing Arrangement: the lender's recourse is limited to the specific asset, held in a bare trust until the loan is repaid. LRBAs typically come with higher interest rates and lower maximum LVRs than retail home loans. The calculator captures these constraints and shows the year-by-year cost.

How it works

Enter the property and your situation

Purchase price, rental income, expenses, loan terms, your salary and family status. The same inputs power both scenarios so the comparison is apples to apples.

Pick the SMSF phase

Accumulation (15% rental, 10% CGT effective) or pension (0% rental, 0% CGT). The calculator shows how the SMSF advantage compounds in pension phase.

See the year-by-year breakdown

Cashflow each year for both scenarios, cumulative wealth, the break-even year, and the cumulative tax gap at sale. Adjust growth assumptions and the headline updates instantly.

What property investors should know

The SMSF route is powerful for the right investor and a tax trap for the wrong one. The maths decides which.

Negative gearing benefits don't flow personally inside an SMSF. A negatively geared property inside super offsets only fund income, not your salary. If your strategy depends on the salary refund, the personal route usually wins early on.
Pension phase changes the maths dramatically. Hold through retirement and the fund pays zero on rental income and zero CGT at sale. For long holds with planned retirement timing, the SMSF advantage can be six figures of avoided tax.
LRBA loans are stricter and dearer. Expect rates around 1% above retail, max LVRs of 60% to 70%, and full personal guarantee. Build the cost of credit into the comparison rather than assuming retail terms.
Annual SMSF overhead is real. Audit, accounting, ATO levy and software typically run $1,500 to $3,500 per year. Funds under about $250,000 in assets often can't justify the overhead.
Setup is not reversible casually. Transferring property out of an SMSF triggers stamp duty and CGT events. Get the structure right at the start; the calculator stress-tests the decision before you commit.

Frequently asked questions

: It depends on your marginal tax rate, the property's cashflow, the holding period and your retirement timeline. SMSFs pay 15% on rental income and 10% effective CGT (after the one-third discount) in accumulation phase, and zero in pension phase. Personal ownership stacks rental income on your salary at marginal rates up to 47%. For high-income earners buying a long-hold, growth-focused property and planning to sell in retirement, the SMSF route often wins. For lower incomes leaning on negative gearing, personal often wins. The calculator runs your specific numbers and shows the exact break-even year.
: An SMSF in accumulation phase pays tax at 15% but gets a one-third discount on capital gains on assets held longer than 12 months. The effective CGT rate ends up at 10% on the nominal gain. In pension phase the SMSF pays zero CGT. Personal ownership gets a 50% discount but at marginal rates up to 47%, so the headline saving is smaller than it looks for higher earners.
: A 15% additional tax on concessional super contributions for individuals whose combined income exceeds $250,000. Effectively it pushes the contribution tax rate from 15% to 30% for high earners. The calculator handles it symmetrically across both scenarios.
: Yes, via a Limited Recourse Borrowing Arrangement. SMSF loans typically have higher rates (around 1% above retail), lower LVRs (60% to 70%), and stricter servicing. The calculator models full P&I amortisation or interest-only based on your inputs.
: Annual admin (audit, tax, ATO levy, software) usually $1,500 to $3,500. Setup of the fund and bare trust if borrowing runs $2,000 to $4,000 upfront. The calculator captures the recurring annual cost as an input so the comparison is not flattered by ignoring overhead.
: The year at which the SMSF scenario's cumulative after-tax position overtakes the personal scenario, or vice versa. The personal route often leads in early years (negative gearing, no SMSF overhead) but the SMSF can catch up later because of the 15% rental tax rate and the eventual move into the 10% or zero CGT environment.

Stop guessing. Run your numbers.

The SMSF decision is a six-figure call. Model it properly before you commit to a structure that is expensive to unwind.