If your business leases commercial property, you could redirect that rent into your own Self-Managed Super Fund (SMSF). Transforming your rent into an asset you control, without changing how your business operates.
Find out how Scott used his SMSF to buy the warehouse his business operates from.
Think about how much rent your business has paid. Now think about what you have to show for it. No equity. No asset. Just a landlord who’s done very well out of your business.
A landlord who can sell the building. Hike the rent. Decide not to renew. A landlord who takes action on their terms, not yours.
There’s a legal, ATO-compliant and highly tax effective alternative most business owners don’t know about. Eligible business owners can use their super to purchase a commercial premises, then lease it back to their business at market rent.
The only thing that changes is where the money goes (and what it does for you over time).
Instead of funding someone else’s retirement, you’ll fund your own.
Same premises. Same rent. Better outcome.
With capital growth and equity that belongs to you. So your rent supports your retirement, not someone else’s.
Rental income inside super is taxed at 15%. Capital gains tax can be as low as 10%, or 0% once you retire.
Your business operates the same. You pay the same rent. Just to a different destination.
No rent hikes. No surprise sales. No cancelled lease. Your super owns the building, so your interests come first.
Not a speculative property strategy. A business and wealth strategy, for those who want more from their money.
01
Your existing super is rolled into a new Self Managed Super Fund (SMSF).
02
A formal lease is drawn up, at genuine market rent, and your business continues running exactly as it does today.
03
You pay the rent into your SMSF. Inside your super, that money compounds and grows, while you pay less tax.
04
The fund pays down the loan. Capital growth and rental income accumulate inside super.
Reach out and we’ll schedule a free, no-obligation strategy call to determine if this is right for you.
Reach out and we’ll schedule a free, no-obligation strategy call to determine if this is right for you. Plus, you’ll get a free copy of our SMSF Property Purchase Guide delivered to your inbox instantly.
To do this properly, you need a licensed financial advisor, an SMSF accountant and a specialist SMSF lender. Most firms only handle one part of the strategy. LINK coordinates the whole process. From start to finish.
Your SMSF strategy isn’t one-size-fits-all. Our licensed financial advisors assess your situation, model the numbers and map out exactly what a commercial property purchase could look like for you.
Administering an SMSF is complex. Our expert SMSF accountants give you the clarity to stay compliant, minimise your tax and get the most from your fund.
SMSF commercial property loans are a specialist game. Our licensed mortgage brokers know the lenders, their credit policies and exactly what it takes to get a deal across the line. Fast.
* Our teams operate independently, as regulation requires. With your consent, we work together to implement the strategy, keeping things simple for you.
Helping business owners grow wealth
An SMSF can acquire both commercial and residential property. Commercial property includes assets such as offices, warehouses, factories, medical suites, retail shops and hospitality venues. Residential property can also be purchased, however it is often less suitable due to lower yields and stricter compliance constraints compared to commercial property.
Yes – but only if the property qualifies as business real property. This means the property must be used wholly and exclusively in a business. The lease must be on arm’s length commercial terms, with rent charged at market rates and supported by a formal lease agreement. Residential property cannot be leased to you or your business.
Yes – provided the property qualifies as business real property and is transferred at market value.
Yes. The property can be leased to a third party initially and later leased to your business, provided all arrangements remain on arm’s length terms.
SMSFs commonly include spouses, but can also include other individuals such as family members or business partners. More complex member structures can introduce additional risks and should be carefully considered.
Yes. SMSFs can borrow using a Limited Recourse Borrowing Arrangement (LRBA), which allows the fund to purchase property under specific rules.
There is no fixed minimum, however these strategies are generally more effective with higher super balances. Lenders typically require a 25–35% deposit, plus funds to cover purchase costs such as stamp duty and legal fees. Additional contributions may be used to help fund the purchase, subject to limits. It’s also important the fund retains sufficient liquidity to meet ongoing expenses. Advice should be sought to determine what’s appropriate for your circumstances.
Typically, a deposit of 25–35% is required, depending on the lender and structure.
This depends on the lease terms. In many commercial property arrangements, the tenant pays some or all of the outgoings, such as council rates, insurance and maintenance. The exact responsibilities should be clearly set out in the lease agreement.
If the property is acquired using borrowed funds, you cannot make substantial alterations while the loan is in place. Where no borrowing exists, improvements are generally allowed. In commercial property, tenants often undertake fit-outs rather than the SMSF altering the core structure.
Yes. An SMSF can hold multiple properties, provided the fund has sufficient resources and remains compliant with diversification and liquidity requirements.Each acquisition should be considered in the context of the overall investment strategy of the fund.
Rental income is generally taxed at 15% while the fund is in accumulation phase. Where the fund is supporting retirement phase pensions, some or all of this income may be tax-free (0%), depending on the proportion of the fund in pension phase and applicable limits.
In accumulation phase, capital gains are taxed at 15%, with a 1/3 discount applying if the asset is held for more than 12 months (effective rate of 10%). If the fund is in retirement phase, some or all of the capital gain may be tax-free, depending on the proportion of assets supporting pensions.
Plus, a free copy of our SMSF Property Purchase Guide. Straight to your inbox.
No obligation • No pressure • Expert advice
