After the residential borrowing ban, this is the comparison every SMSF investor needs to understand. Here is the definitive 2026 analysis of property, shares and ETFs inside a self-managed super fund.
The Three-Way Comparison
| Factor | Commercial Property (LRBA) | Australian Shares | ETFs |
|---|---|---|---|
| Leverage available | Yes | No | No |
| Income yield | High (commercial) | Medium (franked dividends) | Low to medium |
| Capital growth potential | High (long term) | High (long term) | Medium to high |
| Liquidity | Low | High | High |
| Management burden | Medium (PM fees) | Low | Very low |
| Minimum investment | $400,000+ | Any amount | Any amount |
| Fees | PM + maintenance + loan | Brokerage only | 0.03-0.5% MER + brokerage |
| Tax on income (accumulation) | 15% | 15% less franking credits | 15% less franking credits |
| CGT (held 12m+, accumulation) | 10% | 10% | 10% |
| CGT (pension phase) | 0% | 0% | 0% |
Who Should Choose Each Asset Class?
Commercial Property via LRBA
Best for: accumulation-phase SMSFs with $500,000 or more, trustees with property market knowledge, investors who can purchase business premises, those with long time horizons (10+ years) and a higher risk tolerance for illiquidity.
Australian Shares
Best for: SMSFs of any size, those approaching pension phase, trustees who want passive management, funds that need to maintain liquidity for member benefit payments.
ETFs
Best for: smaller SMSFs (under $300,000), passive investors, those who want global diversification, trustees who want to maintain maximum flexibility and liquidity.
GeeVee Verdict for 2026
The most robust SMSF portfolio in 2026 is not a single-asset bet — it is a structured blend. For accumulation-phase funds with sufficient capital: commercial property as the leveraged core, Australian shares for franked income, and ETFs for global diversification and liquidity. This structure maximises the tax advantages of super across multiple return streams while managing concentration and liquidity risk.
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