SMSF Lending · Commercial
Commercial property is now the only property your SMSF can borrow to buy.
From 10 August 2026, borrowing inside a self managed super fund is limited to business real property. Residential came out. Commercial stayed in... and for business owners paying rent to a landlord, that changes the conversation.
Last reviewed
Rebecca Tickner
Finance Broker · Maxfin
Sound familiar?
The problems I hear most often.
You're paying rent on premises you could own
Every month the rent leaves the business and builds someone else's asset. If your fund holds the premises instead, the rent is paid to your own super fund rather than a landlord, subject to it being on arm's length commercial terms.
The residential door just closed
Trustees who planned to build wealth through residential property in super need a different route from 10 August. Business real property is the route that remains, and it's the one most funds have never looked at properly.
Commercial lending is assessed differently
Deposit expectations, lease requirements, valuation treatment and the lender pool are all different to a residential loan. Applying without knowing that is how deals stall.
How It Works
Five stages. Walked together.
The same client journey from your first call through to settlement... and the loan reviews that follow.
Tap a stage to explore
01.
Discover
- 15-minute discovery call
- Hello Pack lands in your inbox
- Click “Get Started” to begin your Fact Find
02.
Plan
- Your Fact Find returned
- I assess your servicing
- You receive your Game Plan with my recommendation
03.
Apply
- Game Plan signed
- I lodge your application
- We wait... lender may come back with clarifying questions
04.
Approve
- Conditional approval
- Final conditions satisfied (e.g. insurance)
- Formal approval
05.
Settle
- Loan documents signed
- Settlement booked, solicitor takes the lead
- Loan settled!
In Practice
If your business is paying rent every month, that money is building someone's asset. The question worth asking is whose.
Rebecca Tickner
What you get working with me.
Your fund can buy your premises from you
Business real property is the exception to the rule against acquiring assets from a related party. A fund can acquire business real property from a member or related party, at market value and on arm's length terms under s109 of the SIS Act. Your adviser confirms whether that applies to your situation.
Commercial borrowing in super continues
The 2026 amendment restricted the acquirable asset to business real property. Borrowing to acquire commercial premises inside an SMSF was not removed, so this remains available where the property and the fund qualify.
Rent can go to your own fund
Where a fund owns the premises its members' business occupies, the lease must be on genuine commercial arm's length terms. The rent then goes to the fund rather than an external landlord.
A wide definition of commercial
Shops, offices, warehouses, consulting rooms, childcare centres, industrial units, factories and accommodation assets are all commonly considered... though whether a specific property satisfies the business real property test is always determined case by case.
Lender selection matters more here
The commercial SMSF lender pool is defined rather than universal, and each lender has its own view on asset type, lease and fund profile. Knowing which door to knock on saves a lot of wasted assessment.
Existing SMSF loans still work too
If your fund already holds a residential property under an existing arrangement, that continues and can still be refinanced... the restriction is on new residential borrowing, not on what your fund already has.
Questions
Frequently asked.
Can my SMSF still borrow to buy commercial property after 10 August 2026?
Yes. The Treasury Laws Amendment (Tax Reform No. 1) Act 2026 amended s67A of the SIS Act so that real property acquired under an LRBA must be business real property. Commercial property that satisfies that test is precisely what remains available. Residential is what was removed.
What counts as business real property?
Section 66(5) of the SIS Act defines it as a freehold or leasehold interest in real property used wholly and exclusively in one or more businesses, whether or not the business is carried on by your fund. The ATO's ruling SMSFR 2009/1 sets out how the test is applied. Whether your specific property qualifies is a determination for your accountant or SMSF adviser.
Can my SMSF buy my business premises from me?
Business real property is the key exception to the rule in s66 that prevents a fund acquiring assets from a related party. Where the property qualifies, a fund can acquire it from a member or related party at market value, and the transaction must meet the arm's length requirements in s109. This is one of the more valuable features of business real property, and it needs your adviser's sign-off before you act on it.
Can my business then lease the premises from my fund?
Leasing fund-owned business real property back to a member's business is common, but the lease must be on genuine commercial arm's length terms... market rent, actually paid, properly documented. Your accountant will structure this. Getting it wrong creates compliance problems for the fund, which is exactly why this sits with them rather than with me.
What about childcare centres, motels or boarding houses?
These are commonly held in funds, but accommodation and mixed-use assets sit closer to the line than a plain shop or warehouse, because the test asks whether the property is used wholly and exclusively in a business. Some residential-in-character property can qualify and some cannot. Do not assume either way... have your adviser confirm the position for the specific property, and I'll work on the lending in parallel.
How much deposit does an SMSF commercial loan need?
Lenders generally expect a larger contribution from the fund than a residential loan would require, and the figure varies by lender, asset type and lease. Your fund also needs liquidity left over to meet repayments and expenses. I'll give you the specific numbers for the lenders that suit your situation, subject to lender criteria.
Do I need independent legal advice?
Most lenders require independent legal advice on SMSF borrowing, and some require financial advice sign-off as well. It's a lender policy matter and it varies. I'll confirm what's required before you commit to anything.
What if my fund already has a residential loan?
It continues. Existing arrangements entered into before 10 August 2026 are grandfathered, and refinancing them remains available under the legislation. There's more detail on that on my SMSF loan refinance page.
Do you give SMSF advice?
No. I provide credit assistance... the lending. Whether an SMSF suits you, whether a property meets the business real property test, and the tax and compliance consequences are all matters for your accountant or licensed SMSF adviser. I work alongside them.
People reading this usually
Tell me about the property
A few questions so I understand the shape of it before we talk. Nothing here commits you to anything, and I don't need your fund's financial details to have a useful first conversation.
Written & reviewed by
Rebecca Tickner
Finance Broker, Maxfin · Diploma of Finance & Mortgage Broking Management (FNS50322) · ASIC Credit Rep 571611 · MFAA Member
I built a seven-property portfolio with my partner. I structure clients' finance the same way I run mine.
More about Rebecca