What does it mean to buy business premises through an SMSF?

This structure allows your SMSF to purchase a commercial property that your business then leases and operates from.

In simple terms:

  • the SMSF owns the property
  • your business leases it at market rates
  • rent is paid into the SMSF
  • the property becomes part of your retirement investment strategy

This is one of the few scenarios where related-party transactions are allowed — provided they are conducted on strict commercial terms.

How the structure works

Buying business premises through an SMSF requires a specific setup:

  • the SMSF establishes an LRBA (Limited Recourse Borrowing Arrangement)
  • a separate bare trust holds the property
  • the SMSF is the beneficial owner
  • your business signs a commercial lease with the SMSF

The lease must be:

  • at market rent
  • properly documented
  • compliant with superannuation regulations

This structure must be in place before entering into a contract.

How lenders assess SMSF business premises loans

Lenders assess both the SMSF and the underlying business.

Typically, they will consider:

  • SMSF balance and liquidity
  • rental income from the lease
  • strength and stability of your business
  • lease terms and commercial viability
  • loan-to-value ratio
  • property type and marketability
  • contribution strategy

Some lenders are comfortable with related-party leases. Others take a more conservative approach.

The way the deal is structured — and presented — is critical.

Common challenges with this strategy

This is a powerful strategy, but it needs to be executed correctly.

Common issues include:

  • incorrect or incomplete LRBA setup
  • lease not meeting arm’s length requirements
  • insufficient SMSF liquidity
  • business not strong enough to support the lease
  • lender policy restrictions on related-party transactions
  • property not meeting lender criteria

In many cases, the issue is not the strategy — it’s the setup.

How we structure SMSF business premises at Evolve

We align the SMSF, business and lender before proceeding.

This typically involves:

  • reviewing your SMSF financial position and contribution capacity
  • assessing your business strength and cash flow
  • confirming the property suits both SMSF and lender requirements
  • ensuring the LRBA and trust structure are correctly established
  • identifying lenders suited to related-party lease scenarios
  • structuring the loan for long-term flexibility

The goal is to ensure the strategy works — both now and into the future.

Speak with a broker before committing to this structure

Buying business premises through an SMSF requires coordination across lending, accounting and legal advice.

Before proceeding, it’s worth understanding:

  • whether the property suits your SMSF strategy
  • how the lease will be structured
  • what lenders will accept
  • how much you can realistically borrow
  • how to avoid compliance or structural issues

A well-structured setup can align your business and long-term wealth. A poor setup can create ongoing constraints.

If you are considering business premises through your fund, you may also want to review our pages on SMSF loans, commercial property loans and business loans.

Speak with Evolve Lending & Finance to review your structure and next steps.