Do I need a separate bare trust for each SMSF property loan?

Yes. Each property purchased with borrowed funds requires its own bare trust, separate loan, and unique trust deed. The SIS Act only allows borrowing for a 'single acquirable asset.'

Can my SMSF receive rental income from a property held in a bare trust?

Yes. Although the property is held in the name of the bare trustee, all rental income goes directly to your SMSF, as it is the beneficial owner.

Can I be both the trustee of the bare trust and the trustee of the SMSF?

Yes, you can—but only if you act in two separate legal roles. It's common for the same person or company to be involved in both trustee roles, as long as the legal entities are distinct.

Can I be both the trustee and the beneficiary of a bare trust?

No. You cannot be both the sole trustee and sole beneficiary. In SMSF structures, the SMSF is the beneficiary, and the bare trustee is a separate entity (often a company).

What happens to the bare trust once the loan is repaid?

Once the loan is fully paid off, the legal title to the property is transferred from the bare trustee to the SMSF trustee. The bare trust is then wound up.

What is a 'single acquirable asset'?

This term refers to one property or asset purchased under an LRBA. You can’t use one loan or bare trust to buy multiple properties or split assets. Each SMSF loan must be tied to a single, clearly identifiable asset.

What is a Bare Trust and Why Your SMSF Needs One to Buy Property

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