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Self-Managed Super - LRBA Structure

SMSF Commercial Property Loan
(LRBA) - buy your business premises

Name: Mortgagefy
Address: Sydney, NSW, AU
Telephone: +61432634648
Price range: Free

By the Mortgagefy Team · Credit Rep 532656 of ACL 348324 · Published 2026-10-15 · Last reviewed 2026-10-15

Buy the premises your business trades from through your Self-Managed Super Fund. Rent paid by your business becomes a tax-advantaged contribution to your super - instead of to a landlord.

Start Your Free Assessment 0432 634 648

Free Business & Commercial Assessment

Takes under 3 minutes. We'll match you with the right lender for your situation.

Who this is for

SMSF trustees buying commercial property - typically the premises their own business operates from (business real property).

Business owner with an established SMSF buying your own trading premises
SMSF with $200k+ in combined member balances available for the deposit + costs
Family-owned business paying significant rent to a third party
SMSF investor adding commercial exposure (office, retail, warehouse, medical)
Looking at an LRBA (Limited Recourse Borrowing Arrangement) structure

The real challenge

SMSF LRBA lending has a tighter policy envelope than regular commercial: lower LVR (60-70% typical, versus 75-80% for non-SMSF commercial), stricter borrower profile requirements, and the LRBA structure itself (bare trust holding the property, limited recourse to the SMSF) adds legal cost and complexity.

The upside is substantial for the right scenario: your business's rent becomes an in-fund contribution instead of a tax-deductible expense that leaves the family group, the SMSF accumulates both yield and capital growth tax-advantaged, and on retirement the property can be transferred out or sold inside the pension phase CGT-free (subject to all the usual conditions).

How Mortgagefy helps

Right lender for SMSF commercial. Not every commercial lender does SMSF LRBA, and policies vary widely on LVR, member age, trustee structure and property type. We know which ones work.
Bare trust & legal structure coordinated with your accountant and SMSF solicitor so the LRBA is compliant from day one.
Business real property test covered - we confirm the premises qualifies as BRP (so your business can rent it from your SMSF under arm's-length rules).
Honest advice on fit. SMSF commercial isn't always the right answer. If your fund balance is too small or your business is too risky, we'll say so.

Need to model repayments first? Try our commercial property loan calculator for an indicative figure, or compare renting with buying in the rent-vs-buy calculator.

How it works

Scope the deal

30-minute call - SMSF balance, property type, your business, deposit available, time horizon.

Lender shortlist

2-3 SMSF commercial lenders matched to your fund structure and the property type.

LRBA setup

Bare trust established (your solicitor), lender's LRBA conditions met.

Settlement

Loan drawn, property transfers to the bare trust, SMSF commences receiving rent from your business tenant.

Get a personalised answer in 2 minutes

Free, no obligation. We'll match you with the right lender for your situation.

Frequently asked questions

What's an LRBA?

Limited Recourse Borrowing Arrangement - the structure the ATO requires for an SMSF to borrow. A bare trust holds the property on behalf of the SMSF; the lender's recourse is limited to that one property if the loan defaults (so other SMSF assets are protected). Legally compulsory for SMSF borrowing.

What LVR can an SMSF get on commercial?

60-70% typical for mainstream commercial. Specialist property (childcare, service station) and low-doc SMSF cap at 60-65%. SMSF LVRs are deliberately lower than non-SMSF commercial because of the regulatory risk.

What's the minimum SMSF balance I need?

No absolute minimum, but practically you need the deposit (30-40%) + stamp duty + legal + buffer. For a $1m commercial purchase that's roughly $400k-$500k in available fund balance. Smaller fund balances typically make the setup cost disproportionate.

What is 'business real property'?

ATO term for commercial property used wholly and exclusively in a business. BRP can be rented from an SMSF to a related party (your own business) at arm's-length market rent. Residential property can't be rented to related parties - BRP is the exception that makes SMSF-owned business premises work.

Can I use my SMSF to buy a residential investment?

Yes, but you can't rent it to a related party or use it personally. Residential SMSF LRBAs exist but policy is tighter (60-70% LVR) and the benefits are usually smaller than commercial, since you can't capture your own business rent.

What happens when I retire?

In pension phase, rent received by the SMSF and capital gains on sale can be tax-free (subject to member transfer balance cap rules). The property can be transferred out of the fund to the member in-specie (with stamp duty implications) or sold externally.

Who handles the legal setup?

Your SMSF solicitor sets up the bare trust and advises on compliance. Your SMSF accountant handles the ongoing fund administration. We coordinate with both and introduce specialists if you don't already have them.

Get your free SMSF commercial assessment

Buy your business premises through your SMSF. 60-70% LVR, 15-25 year terms. We match the right LRBA lender to your fund structure.

Start Your Free Assessment Call 0432 634 648

Related guides

Commercial Property Loans Sydney

Non-SMSF commercial lending for comparison.

Low Doc Commercial Property Loan

SMSF LRBA with alt-doc income.

Business Loans Sydney

Working capital for your trading business.

Development Finance Sydney

If your SMSF is participating in a small development.

Equipment Finance

Chattel mortgage for the equipment inside the premises.

SMSF Home Loans

Residential SMSF LRBA for investment property.

Information checked October 2026. This information is general in nature and does not take account of your personal objectives, financial situation or needs. Business, commercial and development finance eligibility, pricing and documentation varies by lender and changes frequently. Confirm current requirements with your chosen lender and seek professional advice before applying. Mortgagefy — Credit Representative 532656 of ACL 348324.

SMSF Commercial Property Loan(LRBA) - buy your business premises