SMSF Bare Trust for an LRBA: Setup Cost & Process (2026)
Borrowing inside your SMSF to buy property uses a limited recourse borrowing arrangement (LRBA). Every LRBA needs a bare trust (also called a custodian trust or property trust) to hold the property while the loan runs. The trustee of that bare trust is almost always a separate special-purpose Pty Ltd company. Here is what it costs in 2026, and how the process works.
Bare trust trustee company – $696 all-in
- ASIC registration fee: $636.
- Service fee (Cheap Company Setup): $60.
- Total: $696, with the special-purpose constitution and ACN certificate included.
Register your bare-trust trustee company and it is lodged with ASIC as soon as you pay.
Bare trust deed – separate cost
The bare trust deed – the legal document creating the trust – is a separate document, typically prepared by a specialist SMSF deed provider or your solicitor. Typical range: $250-$800. It must be signed before the SMSF makes the offer on the property, otherwise the LRBA structure is broken and stamp duty may be payable twice.
The whole LRBA structure – what you need
- SMSF corporate trustee – the company that acts as trustee of your fund. Set up here for $696.
- SMSF itself – the trust deed plus ATO registration.
- Bare trust trustee company – a separate Pty Ltd company to hold the property. Set up here for $696.
- Bare trust deed – prepared before the property offer is signed.
- LRBA loan agreement – from your SMSF-friendly lender (major banks have exited this space; specialist lenders remain).
Ongoing costs
The bare trust trustee company pays the same reduced ASIC annual review fee of $70 (special-purpose company rate) each year – see the ASIC fees 2026 page for the full schedule. Once the LRBA is paid off, the bare trust is unwound and the property is transferred to the SMSF trustee – this transfer is CGT- and stamp-duty-exempt if done correctly under the LRBA rules.
Common mistake: same trustee for both
The SMSF corporate trustee and the bare trust trustee must be different entities. Using the same company as trustee of both violates the LRBA rules and can jeopardise the fund’s complying status. That is why our platform sets up two separate special-purpose companies.
This is general information about SMSF LRBAs and bare-trust structures in Australia. It is not personal financial, tax or legal advice. Always consult a licensed SMSF adviser before setting up an LRBA.
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