Important: SMSF lending rules change in 2026
SMSF commercial, step by step
An SMSF commercial property loan lets your self-managed super fund borrow to buy commercial property (an office, shop, warehouse or medical suite) held inside the fund.
Can your fund do it?
Most SMSF lenders advance 70–80% of a commercial property’s value, so your fund typically needs a 20–30% deposit plus costs, depending on the property and lease.
| Property | Typical max LVR | Deposit (incl. costs) |
|---|---|---|
| Standard commercial (office / retail / industrial) | 70–80% | ~20–30% |
| Strong lease / prime property | up to 80% | ~20% |
| Specialised (some medical, rural, single-use) | 50–65% | ~40–50% |
Am I eligible for an SMSF commercial loan?
You will need an established, compliant SMSF with enough balance for a 20–30% deposit plus costs and a liquidity buffer, plus fund income (usually the lease rent and contributions) that comfortably services the loan.
Lenders focus heavily on the property and the lease. Typically they look for:
- An established SMSF with a corporate trustee (strongly preferred for commercial).
- A deposit of 20–30% of the property value plus purchase costs.
- A liquidity buffer remaining in the fund after settlement.
- A commercial lease at market rent - ideally to a strong tenant on a multi-year term.
- An SMSF investment strategy that allows commercial property and borrowing.
- A compliant LRBA and bare trust documented before settlement.
Your options
The lease-back is the reason most business owners use an SMSF commercial loan. Your fund buys the property your business trades from; your business signs a commercial lease and pays market rent; that rent flows into your super, building your retirement balance instead of someone else’s.
Own your business premises
Your SMSF buys the property, your business leases it back. Rent goes into your super instead of a landlord's pocket.
Higher yields
Commercial property typically delivers stronger rental yields than residential - often 5–8% compared to 3–4%.
Long-term leases
Commercial tenants often sign 3–10 year leases, giving your fund stable, predictable income.
Broader property types
Offices, retail, warehouses, medical suites - more options than residential SMSF investing.
What can my SMSF buy?
Your SMSF can buy most genuine commercial property: offices, retail shops, warehouses, industrial units, medical and consulting suites, and some specialised premises. The key test is that it is business real property used wholly and exclusively in a business.
The big difference from residential is the related-party rule. An SMSF generally cannot buy residential property from, or rent it to, a member or relative, but it can do both with business real property. That is what makes the buy-and-lease-back strategy possible.
The usual SMSF rules still apply: the sole purpose test (the property is held to provide retirement benefits), arm’s-length dealings, market-rate rent, and the single-acquirable-asset rule under the LRBA. Mixed-use properties (a shop with a residence above, for example) need careful structuring and the right lender.
Pros, cons and risks to weigh up
An SMSF commercial loan can be a brilliant move for a business owner, but it concentrates risk and carries responsibilities. Be honest with yourself, and your accountant, about both sides.
The upside is compelling: you control the premises, rent builds your super, growth is concessionally taxed, and your business gets security of tenure. The considerations matter just as much:
- Liquidity and concentration: a large share of the fund sits in one illiquid asset, and the fund must always cover repayments, even between tenants.
- Vacancy risk: if your business or tenant leaves, the fund still has to service the loan.
- Higher rates and shorter terms than residential, with more variable lender appetite.
- Compliance: the lease must stay at market rent and arm’s length; breaches of the LRBA or sole purpose test risk ATO penalties.
- Suitability: best for established businesses with stable cash flow and a fund with enough balance and buffer.
Whether it suits you depends on your business and fund position. We will give you a straight answer.
How we get you there
An SMSF commercial purchase has a few more moving parts than residential - the lease and a commercial valuation add steps. Allow roughly 4–8 weeks from application to formal approval, depending on the property and lender.
We discuss the property, your business and your fund, and whether an SMSF commercial purchase stacks up.
We review your SMSF structure and balance, and how the lease will service the loan, coordinating with your accountant.
We coordinate the LRBA and bare trust, and make sure the lease is at arm’s length and properly documented, with your solicitor.
We compare the lenders active in SMSF commercial and match your property and lease to the best fit and rate.
We prepare the application, manage the commercial valuation and conditions, and keep you updated to approval.
We see it through to settlement and stay your broker for the life of the loan, including future reviews.
What does an SMSF commercial loan cost?
Budget for the deposit, the bare trust setup, legal fees and the lender’s application and commercial valuation costs. Commercial valuations cost more than residential and can take longer.
Typical line items:
| Cost | Typical range (indicative) |
|---|---|
| SMSF establishment (if new) | $1,500 – $3,000 |
| Bare / holding trust setup | $500 – $1,500 |
| Legal & conveyancing | $2,000 – $4,000 |
| Commercial valuation & lender fees | $1,000 – $3,000 |
| Ongoing SMSF admin & audit (p.a.) | $1,500 – $3,500 |
Indicative only - commercial costs vary by property and state. Confirm with your accountant and solicitor.
Why use an SMSF specialist broker for commercial?
Commercial SMSF lending is a narrow niche: only a handful of lenders write it, and their policies on property type, lease and LVR differ enormously. A specialist broker knows which lender will look favourably on your specific deal.
Get it wrong and you face a flat decline or a poor rate; get it right and you secure the property on terms that suit your fund. We assess your property and lease, match them to the right lender among those active in SMSF and commercial lending, and coordinate your accountant, solicitor and auditor.
As an SMSF lending specialist in Norwest, Sydney serving clients Australia-wide, koala financial arranges these structures regularly, so the complexity sits with us, not you.
Proof
You deal with Scott directly, start to finish, and the trustees we've already helped say it best.
“Scott has been incredibly helpful and ran such a smooth process. Genuinely wants the best for his customers. Thanks Scott”
SMSF commercial questions, answered
The questions fund trustees ask us most.
Can my business lease property from my SMSF?
Can my SMSF buy the premises my business already operates from?
Is commercial lending different from residential?
How much deposit do I need for an SMSF commercial loan?
What rent does my SMSF have to charge?
What types of commercial property can I buy?
Can my SMSF buy a property with a residence attached?
Do I need a tenant lined up?
How long does an SMSF commercial loan take?
Are SMSF commercial rates higher than residential?
Interested in a commercial SMSF loan?
Book a free discovery call. We'll look at your situation and tell you what's possible.