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Writer's pictureManookian Solicitors

Do you meet the “sole purpose test”?

Updated: Jun 17, 2020

A Self-Managed Superannuation Fund (SMSF) is a superannuation trust structure that provides benefits to its members upon retirement, where the SMSF members are also the trustees of the fund. If you already have a SMSF then contact Manookian Solicitors to get advice on how to purchase a property through the SMSF as there are regulatory requirements that you must comply with. Borrowing or gearing your super into property must be done under strict borrowing conditions called a “limited recourse borrowing arrangement”. A limited recourse borrowing arrangement can only be used to purchase a single asset, for example a residential or commercial property. If you are considering setting up a SMSF, you must meet the “sole purpose test”.


Contact Rostom Manookian on 0416 716 960 or email: rostom@manookiansolicitors.com to discuss how we can assist you in setting up a SMSF and how you can use your SMSF to purchase an asset or if you are considering transferring property to your SMSF we can advise you on the evidentiary requirements necessary to effect such transfer.

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