SMSF Post-Settlement
Liquidity Buffer Simulator
See the post-settlement cash reserve required by lenders for SMSF property purchases under a Limited Recourse Borrowing Arrangement (LRBA) — before you apply.
When using a Self-Managed Super Fund (SMSF) to purchase property through a Limited Recourse Borrowing Arrangement (LRBA), most SMSF lenders mandate that the fund must retain a post-settlement liquidity buffer—commonly 10% of the loan amount, a flat $50,000, or the higher of the two—so the fund's liquid assets do not run to zero. If your fund can cover the deposit and acquisition costs but falls short of this post-settlement buffer, the mortgage application can stall. This interactive calculator estimates the required cash reserve for your scenario to help you structure the purchase before you apply.
✅ Current as of 16 June 2026 · estimate only · not a credit quote
Your Numbers
Liquidity Buffer Summary
Indicative only. Estimated cash after settlement ($250,000) clears the illustrative reserve ($64,000).
This calculator covers one pillar: Assets & Equity. Your real borrowing outcome depends on all five assessment pillars working together.
See your full picture at Structur →Walkthrough video — coming soon
A short walkthrough showing how the post-settlement liquidity buffer reacts to purchase price, cash balances, and different lender rules will live here.
How Post-Settlement Liquidity Buffer Requirements Work
Using a Self-Managed Super Fund (SMSF) to buy commercial property or a residential investment through a Limited Recourse Borrowing Arrangement (LRBA) is a powerful strategy. However, many trustees focus heavily on raising the deposit and transaction costs, only to have their applications stall because of the post-settlement buffer.
Why Lenders Care About Post-Settlement Cash
SMSF loans are complex and highly structured. Because the lender's recourse is limited to the single property asset purchased under the LRBA, they assess the fund's liquid assets carefully. Lenders do not want the fund to be "cash dry" once settlement completes. Retaining a post-settlement liquidity buffer ensures the fund can:
- Absorb tenant vacancy periods without risking immediate default on the mortgage interest.
- Pay annual SMSF costs such as accounting, auditing, ASIC registration fees, and corporate trustee expenses.
- Handle property holding costs including emergency maintenance, insurance, and council rates.
Benchmark Rules: Varies by Lender
There is no single regulated buffer requirement; it is set entirely by the underwriting policy of each individual lender. Commonly, the benchmark is set as:
- 10% of the Loan Amount: For example, an $800,000 loan would require a cash reserve of $80,000.
- A Flat Figure: Commonly $50,000, irrespective of the purchase price or loan amount.
- The Higher of the Two: Under this common policy, a smaller loan would default to the $50,000 flat buffer, while a larger loan would be subject to the 10% rule.
While some standard lenders enforce these benchmarks strictly, specialized and non-bank lenders may offer policy windows that accommodate different cash positions. Knowing these policies in advance allows you to structure the fund's contributions, asset distributions, or rollover schedules before applying.
Note: SMSFs are excluded from the proposed negative-gearing changes in Australia.
Frequently asked questions
What is a post-settlement liquidity buffer for an SMSF loan?
A post-settlement liquidity buffer is a cash reserve that a Self-Managed Super Fund (SMSF) must retain in its bank account after paying the property deposit, stamp duty, and other transaction costs. Lenders mandate this to ensure the fund is not left with zero liquid assets after settlement, providing a safety net for ongoing fund expenses, interest payments, or property maintenance.
How is the required liquidity buffer calculated by SMSF lenders?
Liquidity buffer requirements are set by individual lenders and are not a single regulated figure. Commonly, lenders require a reserve equal to 10% of the loan amount, a flat amount (like $50,000), or the higher of the two. Some specialized lenders may apply different rules depending on the overall strength of the fund and the property type.
Are Self-Managed Super Funds affected by proposed negative gearing changes?
No. Self-Managed Super Funds (SMSFs) are excluded from the proposed negative gearing changes in Australia. This exclusion makes the SMSF structure a key area of interest for property investment, provided that the trustees seek appropriate licensed financial and accounting advice.
Can the liquidity buffer be held in assets other than cash?
Lenders typically require the buffer to be held in cash or cash-equivalent liquid assets within the SMSF's transaction or cash accounts. Non-liquid assets, such as direct property or shares that cannot be instantly liquidated, generally do not count toward this post-settlement buffer requirement.
Built by Virginia Graham Riches, founder of Model Mortgages and host of Property & Mortgage Insights Australia, supported by a specialist team of five mortgage brokers through Finance on the Coast. We align your SMSF cash structure with the underwriters whose buffer requirements suit your position.
Book a Strategy Session to Review Your SMSF Lending Options