Using your SMSF to buy your business premises after 10 August 2026

Since 10 August 2026, a new SMSF loan can only be used to buy real property if that property is business real property. For a business owner, that means the fund can still borrow for the premises the business runs from, but the rules on the price and the rent are strict. Whether the fund should buy your premises is a question for your accountant and SMSF adviser. Our part is the lending.

Current as at November 2026.

What changed on 10 August 2026?

The Treasury Laws Amendment (Tax Reform No. 1) Act 2026 is dated 26 June 2026, and its Schedule 5 deals with limited recourse borrowing arrangements (LRBAs) under the superannuation law. From 10 August 2026, a new LRBA can only be used to buy real property if that property is business real property.

Some arrangements are not affected. Existing LRBAs continue, refinancing of an existing LRBA is still possible, and contracts exchanged before 10 August 2026 are unaffected. If you already have an SMSF loan, the change may not touch it at all.

That leaves two different conversations. One is refinancing a residential loan the fund already has. The other is buying business premises with a new loan. The first stays open under the transition rules.

What counts as business real property?

Business real property is land and buildings used wholly and exclusively in a business. That is the test the fund’s property has to meet, and it is the first thing to check before anyone looks at a loan. Your accountant can tell you whether a particular building meets it.

Can the fund buy the premises from my business or from me?

Business real property can be bought from a related party, so a purchase from you or your business is possible. The price is part of the rule. Under the ATO’s guidance, business real property acquired from a related party at market value is outside the usual ban on related party acquisitions. The fund must also still meet the sole purpose test.

Can the fund lease the premises back to my business?

One structure is for the fund to own the premises and lease them to the business. Business real property leased to a related party can be an exception to the in-house asset rules, but only if the lease is on arm’s length terms at market value. In-house assets are otherwise capped at 5 per cent of the fund’s assets.

The ATO’s SMSF investment restrictions page sets out the wider limits.

What will a lender look at?

Lenders set their own policies for SMSF lending. Each one has its own limits on the fund’s balance, the cash left after settlement and the loan size against the property value. Some publish those limits and others don’t. We work across a panel of 75+ lenders, so we can look at which ones will consider a fund’s file and explain what each one will want before an application goes in. Our comparison of lenders that offer SMSF loans shows how that works in practice.

If you want to know whether a lender would look at a premises purchase for your fund, talk to an SMSF lending specialist. Costs also differ from a standard loan, and the SMSF loan costs guide covers why.

What should you ask your accountant first?

Bring these questions to the accountant or SMSF adviser before you speak to a lender:

  • Is the property used wholly and exclusively in the business, and will it stay that way?
  • What is the market value of the property, and what would a market rent be?
  • How will the lease be written, and when will it be reviewed?
  • Will the fund still meet the sole purpose test once the purchase is done?

The SMSF loans explained post covers the wider change, and our SMSF lending page has the detail on the lending side. Lending and compliance sit with different people. Your accountant and SMSF adviser own the fund side: the trust deed, the investment strategy, the valuation and the lease. We’re on the lending side: which lenders will look at the file, what they will ask for, and how the application is put together.

Once you have those answers, talk to an SMSF lending specialist and we’ll go through the lending side with you.

This is general information only. It doesn’t take your objectives, financial situation or needs into account and isn’t financial, tax or legal advice. Whether an SMSF should buy business premises, and how a lease should be set, is a matter for a licensed financial adviser and your accountant. Loan Lounge, ACL 515608.

Frequently asked questions: SMSF business premises loans

Can an SMSF still borrow to buy a house?

Not with a new LRBA to buy residential property from 10 August 2026. Existing residential LRBAs continue, and they can be refinanced. Contracts exchanged before 10 August 2026 are unaffected.

Can my SMSF buy the building my company runs from?

It can, if the building is business real property and the purchase meets the related party rules. The price has to be market value, and the fund still has to meet the sole purpose test.

Does the business have to pay rent to the fund?

If the premises are leased to a related party, the lease needs to be on arm’s length terms at market value. Your accountant will confirm the figure and the paperwork.

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