Can My SMSF Buy Commercial Property and Lease It to My Business?

Australian super rules can allow an SMSF to acquire business real property from, or lease it to, a related party where strict conditions are met and transactions are at market value. Borrowing generally requires an LRBA structure. Obtain specialist SMSF legal and tax advice before signing a contract.

Quick answer: Australian super rules can allow an SMSF to acquire business real property from, or lease it to, a related party where strict conditions are met and transactions are at market value. Borrowing generally requires an LRBA structure. Obtain specialist SMSF legal and tax advice before signing a contract.

Questions borrowers, investors and developers commonly ask

  • Can my SMSF buy the warehouse my company operates from?
  • Can my business pay rent to my SMSF?

Business real property is a specific super-law concept

Not every mixed-use or business asset qualifies. The property must satisfy the relevant rules and dealings need to be at arm’s length or market terms.

Borrowing structure must be right before contract

LRBA bare-trust/custodian arrangements and lender requirements are specialist. Fixing the purchaser after exchange can be costly.

Related guides

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Krish Neelamraju — Founder, GPS Finance Group

Krish is a finance and credit professional with more than 20 years of lending and credit experience.

General information only. Commercial-property and development lending criteria vary by lender, transaction, security and market conditions. This is not legal, tax or investment advice.

Frequently asked questions

Can my SMSF buy the warehouse my company operates from?

Australian super rules can allow an SMSF to acquire business real property from, or lease it to, a related party where strict conditions are met and transactions are at market value. Borrowing generally requires an LRBA structure. Obtain specialist SMSF legal and tax advice before signing a contract.

Can my business pay rent to my SMSF?

Not every mixed-use or business asset qualifies.

Will every lender treat this the same way?

No. Commercial and development lending policy varies materially by lender and transaction.

Should I apply before the structure is tested?

For material or unusual transactions, test lender fit and the funding structure before creating formal applications.

Sources and verification

Need help matching this to a business-finance option?

GPS Finance can review the funding purpose, conduct, documents and lender fit before you make a formal enquiry.

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