Property Held Personally, Through a Family Protection Trust or SMSF: Which Structure Wins?

It’s one of the most common questions we hear.

“What’s the best structure to hold investment property?”

And the honest answer, as always, is: it depends.

But the 2026 Federal Budget has made the conversation more interesting.

Personal ownership

Holding property in your own name is the simplest approach.

You have direct control, straightforward borrowing access, and — under current rules — the 50% CGT discount for assets held longer than twelve months.

The proposed CGT reforms from 1 July 2027 may change the discount structure. Negative gearing on established residential property acquired after 12 May 2026 may become restricted.

Personal ownership remains valid. But its relative advantages may shift.

Family Protection Trust

A well-structured Family Protection Trust offers genuine flexibility: income distribution across beneficiaries, asset protection from creditors and family law risk, and long-term succession planning.

The Trust doesn’t just hold assets. It protects what your family has built — from the unexpected as much as from unnecessary tax.

The proposed 30% minimum distribution tax from 2028 may reduce the tax advantages of certain income-splitting strategies. But the protective benefits — which are often more valuable than the tax outcomes — remain strong.

Self-Managed Super Fund

An SMSF can offer exceptional long-term tax outcomes, particularly for assets held to retirement.

Accumulation-phase earnings are taxed at 15%. In pension phase, income and capital gains can be entirely tax-free.

The proposed Budget reforms largely bypass complying superannuation funds. While Family Protection Trusts and personal property strategies face proposed reform, the SMSF environment remains broadly intact.

That matters.

So which structure wins?

None of them. All of them.

The strongest families rarely hold all their wealth in a single structure. They build layered defences — personal assets, trust-held assets, super-held assets — each serving a purpose.

The Budget provides a timely reason to review which assets sit where.

Not because the rules have changed yet. But because understanding your position clearly — before the rules change — is always the better strategy.

That’s exactly the kind of review we help clients work through.

Want to talk through what this means for your situation? We’re always only one call away.

Book a conversation with the Lighthouse team → hello@lha.au · 02 9055 1330