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SMSF commercial property loans.

For business owners, holding the business premises inside an SMSF can be one of the strongest structures available, when it fits. Since 10 August 2026 it is also the only kind of new SMSF property borrowing permitted. Here is how the lending side works.

Why commercial is a different conversation.

SMSF commercial lending has always had one thing SMSF residential did not: the 'business real property' exception. Since 10 August 2026 it is the only kind of real property an SMSF can borrow to acquire. If the property is used wholly and exclusively in one or more businesses, the SMSF is allowed to acquire it from a related party (including the business owner) and can lease it back to the related-party business on arm's-length commercial terms. This is how many SME business owners come to own their premises through their SMSF, paying rent into their own super fund for 20 years rather than to a third-party landlord.

The lending side uses the familiar LRBA structure, with a bare trust holding legal title. LVRs are commonly available up to 80% for office, industrial, retail and warehouse securities, with a small number of specialist lenders going higher in metro locations. Interest-only terms and regional securities usually carry lower caps. Loan sizes range from around $100,000 to several million depending on the lender, location and LVR. Some lenders apply no liquidity test at all, others want a few months' repayments or a minimum fund balance, and appetite for specific asset types (industrial versus retail versus office, tenanted versus vacant) varies significantly.

SMSF commercial FAQs

What makes a property 'business real property'?
The property must be used wholly and exclusively in one or more businesses. That doesn't have to be the SMSF members' own business, though it usually is. The ATO has detailed rulings on this, so each property needs to be checked carefully.
Can my business pay rent to my SMSF?
Yes. That's one of the main reasons this structure exists. The rent must be at arm's-length commercial rates, documented in a formal lease and paid on time, or the SMSF risks compliance issues.
Is SMSF commercial lending still available?
Yes. The 10 August 2026 changes ended new residential SMSF borrowing and left business real property untouched. The major banks do not accept SMSF applications, but a group of specialist and non-bank lenders remain active in commercial SMSF, and several have expanded their offers. Pricing is slightly higher than standard commercial.
Can a vacant commercial property qualify?
It can, provided it is used wholly and exclusively in a business, which usually means a lease is in place or the member's business is moving in. Lenders often apply a stricter liquidity test to a vacant security or a lease with less than a year to run, so the leasing plan matters to the lending as well as to compliance.
Important: SMSF lending decisions involve superannuation, tax, and legal considerations that sit outside the scope of mortgage broking. Nothing on this page is financial product advice. Always coordinate with your financial adviser, accountant, and SMSF specialist before acting on any SMSF lending information. Rules described here reflect the Treasury Laws Amendment (Tax Reform No. 1) Act 2026 and lender policy as at September 2026, and can change.

Related pages

SMSF residentialCommercial property loansTrust lending

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