Stop paying rent to a landlord. Buy your business premises with super instead.

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.

Key benefits include: paying rent to your own super fund instead of a landlord, potential tax efficiencies, greater control over your business premises, and building long-term retirement assets within super.

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.