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Can an SMSF buy a commercial property?

An SMSF may be able to purchase commercial property using a Limited Recourse Borrowing Arrangement (LRBA), subject to the fund's trust deed, investment strategy, and compliance requirements. Commercial property may be leased to a related-party business on arm's length terms, which is one of the more commonly cited scenarios. Whether this is appropriate for your SMSF requires independent advice from a licensed SMSF adviser, accountant and solicitor. Obtain Finance provides credit assistance only.

Can my business rent from my SMSF?

Under certain conditions, an SMSF may lease commercial property to a related-party business at commercial (arm's length) rent. This is commonly done for business premises. However, this is a complex compliance area regulated under the Superannuation Industry (Supervision) Act. It requires specific legal advice and must not breach the in-house asset rules or other SIS Act provisions. Obtain Finance does not provide legal, SMSF or superannuation advice.

What deposit does an SMSF need for a commercial property?

SMSF commercial property lenders typically require a deposit of 20–35% or more of the property purchase price, depending on the property type, location, tenant, and lease terms. The fund must also maintain sufficient liquidity after the purchase. Requirements vary significantly by lender.

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SMSF commercial property loans

Purchasing commercial property through an SMSF is one of the more complex lending scenarios in the Australian market. This guide provides general lending information only — not superannuation, investment, tax or legal advice.

SMSF commercial property borrowing requires independent advice from a licensed SMSF adviser, accountant and solicitor. Obtain Finance provides credit assistance only.

Ask about SMSF commercial property finance

Michael Short— Credit Representative 468493, ACL 389328Sydney, NSWLast reviewed: June 2026

Buying business premises through an SMSF

One of the scenarios for which SMSF commercial property borrowing is commonly discussed is the purchase of a business's trading premises. Under the SMSF rules, commercial property may — subject to strict conditions — be leased to a related-party business (such as a company controlled by fund members).

For this to be compliant, the lease must be on arm's length commercial terms — meaning market-rate rent, a documented lease agreement, and ongoing compliance with SIS Act requirements. This area carries significant compliance risk if not set up and maintained correctly.

Whether purchasing business premises through an SMSF is appropriate, and whether it meets the fund's investment strategy and the sole purpose test, is a question for a licensed SMSF financial adviser. Obtain Finance does not make this assessment.

Commercial property finance inside an SMSF — the lending structure

SMSF commercial property purchases use the same LRBA structure as residential SMSF purchases, but with some important differences in how lenders assess the application:

Property security assessment

Lenders assess the commercial property as security more conservatively than residential. Location, property type (office, retail, industrial, medical), lease terms and tenant strength all affect the lender's appetite and LVR.

Lease evidence

Lenders typically want to see a current lease agreement with rent at market rates, the lease term, and tenant information. Properties with strong tenants and longer leases may attract better lending terms.

SMSF fund serviceability

Serviceability is assessed from the fund's total income — member contributions, rental income, and investment returns. The lender needs to be satisfied the fund can meet repayments from ongoing income without needing to sell assets.

Maximum LVR

SMSF commercial property loans typically have maximum LVRs of 65–75%, meaning deposits of 25–35% are commonly required. This varies by lender, property type and location.

Lender appetite for SMSF commercial property

Compared to SMSF residential property lending, there are generally more lenders active in the SMSF commercial space, including some non-bank lenders and specialist SMSF lenders. However, appetite varies significantly by property type:

Industrial / warehouse:Generally good lender appetite where property is well-located and leased

Medical / healthcare premises:Strong lender appetite for professionally-leased medical facilities

Retail shops:More conservative — lender appetite depends on location, tenancy and lease

Office space:Variable — CBD offices and strata title offices may face restrictions

Specialist assets (service stations, hospitality):Limited lender appetite — requires specialist assessment

General guidance only. Lender appetite and terms are subject to change. A broker can help identify suitable lenders for your specific property.

Finance support

Enquire about SMSF commercial property finance.

Tell us about the property and your SMSF — a broker can outline the credit assistance options available. Independent superannuation, legal and tax advice is required.

Related-party business tenancy — general considerations

Related-party leasing of commercial SMSF property is a compliance-sensitive area. Getting the structure and lease terms right from the outset is critical. Obtain independent legal and SMSF advice before proceeding.

Where an SMSF owns commercial property and a related business (such as a trust or company controlled by fund members or relatives) leases the premises, the following general principles typically apply — subject to SMSF rules and ATO guidance:

The lease must be on genuine arm's length commercial terms

Rent must reflect market value, documented by an independent valuer

The lease must be in writing and registered if required in that jurisdiction

Rent must be paid on time — defaults have SMSF compliance consequences

Variations to lease terms must be at arm's length and documented

The ATO may scrutinise arrangements that appear to benefit members at the expense of the fund

This is general information only. Obtain independent legal, SMSF and accounting advice before entering any related-party lease arrangement.

Refinancing SMSF commercial property

Refinancing an existing SMSF commercial property loan is possible. Common scenarios include: seeking a better interest rate, moving from a non-bank to a bank lender after the loan is established and performing, or extending the loan term. Refinancing still requires LRBA-compliant structure and professional advice.

Discuss SMSF property finance with a broker.

SMSF property borrowing involves a specific lending structure, compliance requirements, and lender assessment criteria. Obtain Finance provides credit assistance only. Seek independent advice from a licensed SMSF adviser, accountant and solicitor.

Call 0421 744 572

General information only. Credit assistance only. Subject to lender policy and credit assessment. Seek independent superannuation, legal and tax advice.

General advice warning: This information is general in nature and does not constitute personal financial or credit advice. Figures shown are indicative only — not guaranteed. You should consider your own circumstances and consult a qualified mortgage broker or financial adviser before acting on any information on this page. Michael Short (Credit Representative 468493) operates under Australian Credit Licence 389328.